As previously mentioned on the last blog post (Is it a seller's market?), the real estate market in San Jose and in the Santa Clara County seems to be picking up. My broker and I held an open house this past Saturday in Santa Clara and we did an "extreme marketing" open house. We had over 300 people through in two and half hours and generated 77 offers. The winning offer was about $20,000 over seller's expectation and the buyer waived appraisal contingency. Part of the success is due to our special marketing program; however, it certainly represents what is going on the market, namely the lack of inventory combined with strong buyer demand is driving up competition and therefore price.
The statistics certainly demonstrated similar story:
1. Number of new listings in April actually dropped: 628 in April for single family homes compared to that of 723 in March. For townhomes/condos, similar trend follows; new listings are at 236 in April compared to that of 265 in March. This is contrary to the normal real estate cycle where Spring time sees an increase in the inventory, normally.
2. Bank owned homes and short sales inventory
New Bank owned listings (Single family): 62; closed sales 113
New Short sale listings (Single family): 133; closed sale 234
3. Median sales price continue to trend upward at $535,000 compared that to $493,250 in March
4. Months of inventory 3.5 and SP/LP ratio at 99.9%
Analysis:
1. Market is picking up due to the shortage of good quality homes. Buyers/investors expect strong competition and multiple offers. Further, expect to pay top dollars if you really want the home. The key to getting a home may be working with a dedicated agent and be patient.
2. Sellers: with the right marketing strategy, you may get top dollars. Pricing strategy is important. We have extremely good outcome when clients understand and choose the extreme marketing strategy.
Finally, if you are looking in other cities other than San Jose, feel free to contact me for similar statistical information. Also, if you're in the market to buy/invest, contact me for a consultation to learn how you can buy homes without competition. If you're in the market to sell, call me for an overview on our special extreme marketing program that will generate 20-30 offers and top dollars!
*All information are deemed reliable but not guaranteed. Statistics are done by MLS and are current as of April 30, 2012*
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