SAN PEDRO CA INVENTORY SHORTAGE CREATES PROBLEMS FOR HOME BUYERS
Not too long ago, buyers weren’t ready to buy. Even one year ago, you almost had to twist a buyers arm to help them understand what a fantastic climate it was in the housing market for them. It was a “Buyers’ Market!” Now, I emphasize “it was!!”
Here we sit with historically low interest rates of 3.25% on FHA conforming loans and guess what? Buyers are out in droves! Somehow they got the message and they recognized it was the right time to buy!! But is there anything to sell them? Not really.
In fact, usually each week when we have broker’s tour of new listings in our region there are anywhere from 5-10 usually. Within the last couple of months, we are lucky to see 2 per week! Homes are selling first week on the market with multiple offers over asking! When I say multiple I mean 15 offers for one home! When I say over asking price, sometimes prices go up over $20,000 above list price! Yes, that’s right, it is now a Seller’s Market!
Supply and demand has taken over our current market in Los Angeles County and especially in San Pedro CA. Where have all the “good deals” gone? All the buyers want to know! They are frustrated with the process of writing offer after offer only to be told the disappointing news that their offer was not accepted.
Buyers have to be patient and they have to work with a Realtor that they trust. In this climate, a Realtor will have to work twice as hard to get a client into escrow. This is especially true for FHA buyers. Sellers are hesitant to take FHA offers because they are concerned that they will end up having to pay for lender required repairs. Depending on the buyers’ price range, this is an uphill battle. This is why it is critical for a buyer to work with one Realtor and to stay with that Realtor.
Some buyers have the perception that they will use multiple Realtors in order to get a home. They feel like it ups their chances somehow. Nothing could be further from the truth! A Realtor who has a loyal client will work around the clock to get that client a home. We all have access to the same homes and listing information no matter whether we list the home or someone from even another county does.
Just because a buyer chooses to pay cash for a home, it doesn’t guarantee that they will get the home they want. It is still a process of making an offer and beating out the competition! Believe it or not, there are many cash buyers in the market right now. In the end it comes down to price, term
Bottom line? Stick with your Realtor and have them help you navigate through this market. In the end, you will have received the best customer service possible and allowed yourself the chance to take advantage of great interest rates while buying a place to call home!
This is Wendy Rich-Soto, "Your San Pedro Real Estate Girl."..Signing off....