DON'T TRY TO TIME THE MARKET...YOU ARE APT TO BE TOO LATE!

By
Real Estate Agent with Dunnigan, Realtors, Sacramento (916) 425-9715 CalBRE # 01188158

Anyone who is claiming doom and gloom for Sacramento's real estate market, simply isn't paying attention. 

I just read a post on my Facebook page in which an agent is asking for everyone to keep their fingers crossed....they are among 10 other offers presented for a listing that has been on the market one day.  One of the comments expressed appreciation that they are only competing with 2 other offers.  I wrote an offer last weekend on a property that already had 2 offers and, by the time an offer was accepted, there was a total of 5.

This isn't an anomoly.  I have been hearing the same stories at regional association meetings, charitable events and inImproving Market conversations with other Realtors around the city.  Our market has been increasingly strong for the past 5 months.  Our inventory is frustratingly low.  We have way more buyers than properties to sell them, so when a good one comes along, they are chaffing at the bit to purchase.

Here is the new advice: be prepared to pay over asking price for a new listings priced right.  Be prepared to have sellers be not quite so accomodating.  As banks slowly but surely get their act together and allow more short sales be approved in a more reasonable time, be prepared to make offers on short sales.  There is no onslaught of shadow inventory coming...so waiting won't help.

The bottom line?  If you are looking for a home, don't wait a minute longer.  Interest rates are amazing...I had a client who just locked in a 3.5% interest rate for a conventional loan with no points.  Prices are not going to keep dropping.  It is now time to get on the bandwagon, because it simply isn't going to get any better!

Comments (5)

Peggy Wester
Realty Executives Integrity - Grafton, WI
Real Estate Agent Ozaukee & Washington County

Wow! While we have definitely seen an upswing in activity out there, I don't think there are too many properties getting above asking price yet. But things are definitely moving. Nice to hear things are picking up in other areas of the country as well!

Mar 02, 2012 04:55 AM
Todd Clark
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

Often those who try to time the market will lose. That is why they don't try it in the stock market either. (At least those who are successful) It can take over a year to get the prices to go down $10,000 and that can equal a $100 savings, but if the interest rate goes up a 1/2 percent you will be paying a lot more than that $100 savings you lost. 

 

Mar 10, 2012 07:10 AM
Nathan Sherman
Dunnigan Realtors - Sacramento, CA

I completely agree.

 

I just closed a deal where my buyers barely beat out 6 other offers. I have other clients where we have repeatedly missed out due to multiple offers and the property selling for above list price in Natomas, a neighborhood that used to have an excessive amount of properties to choose from.

 

East Sac, the neighborhood that I specialize in has only 39 properties on the market right now. At this time of year we should have at least 80 or 90 active listings.

 

The time for decisive action on buying a home is now, and it would have been better for a buyer if they had made the move 4 months ago…

 

Mar 12, 2012 01:55 AM
Christine Blaski
Cornerstone Real Estate - Frisco, CO
Frisco, Summit County CO Realtor

It is great to hear your market is increasing in strength. Ours "seems to be" bouncing along the bottom. Only time will tell. Inventory is low but there has been a lot of listing activity lately. Buyers are coming out in droves too. Having the opportunity to educate them on acting before we get to your level will be essential. 

Thanks. 

Mar 12, 2012 02:08 AM
Harrison K. Long
HomeSmart, Evergreen Realty - Irvine, CA
REALTOR , GRI, Broker associate, Attorney

Paula ... You are so right - If someone is looking to buy a home, now is the best time, with fantastic buyer purchase money loan interest rates, and that prices won't keep going down much longer if at all.

Apr 05, 2012 03:43 PM