Demand is rising

By
Real Estate Agent with no current broker affiliation

This is what I've been blogging about.  Here's a snippet from my company's latest Market Time Report,

"At the beginning of the year, demand, a snapshot of the last 30 days of escrow activity, was at 944 escrows.  Today, demand has increased by an additional 1,139 escrows to 2,083."

That is... UP BY 121%

What of prices, however?  Still low!  I think we will have a couple more months before prices start following demand back up.  It will depend on how the recently-released new FHA loan limits affect demand for properties in different price ranges.  Right now, REOs (bank-owned foreclosures) still lead the market.  Buyers are already seeing the best-priced properties getting snatched from their grasp by other buyers.  This is not the time to step over quarters to pick up pennies.  Be ready to act on a property you know is the right home for the right price, or someone else will.

I think the back half of this year will be a significant improvement upon the front half.  Demand may peak late this year, around Fall, as people realize they must act while they can (as of this writing, the raised FHA loan limits are only set to remain so until year's end).

The smart buyer would be looking for deals now, before there is too much competition to get the best price.

Comments (5)

Kevin Teeters
Kevin Teeters Realty LLC - Hickory, NC
Hickory NC Realtors
REO business is booming in my area.  In my county, which is not the largest by far in the state, we had roughly 2.300 foreclosures at any given time this year.  That is incredible.  It puts some pressure on those ready to sell who are in good financial standing as they attempt to compete with the REO business.
Mar 21, 2008 11:19 AM
Dennis Sanchez
Coldwell Banker Tenafly - Hackensack, NJ
Seems like we are on the same team. lol I am trying to inform the consumers that right now is the time to buy or lose out on the deals.
Mar 21, 2008 11:47 AM
Sandra Carlisle (Ayers)
Berkshire Hathaway California Properties - Newport Beach, CA
Real Estate Marketing & Sales

We are watching them lose here left and right.  If it is correctly priced, it's multiple offers.  It will take some time before they believe it...

Those bank owned & foreclosure properties can be misleading.  Buyers need to realize that they show as active in the MLS, even if they have multiple offers on them already, until the bank makes a decision (which can be anywhere from 2-6 months).

Mar 21, 2008 12:31 PM
Royal Goodman
Royalty Home Solutions - Madera, CA
"We Treat You Like a King"

I think you are correct. This is what I have seen this year also. Thanks for the post. Royal..

Mar 21, 2008 01:09 PM
Kelly Turbeville
Keller Williams - Lake Forest, CA
Turning Real Estate Dreams into Reality
Yeah!
Mar 24, 2008 10:50 AM