The changes that I have seen in the last couple of weeks have been amazing. I have been writing offers for clients on bank repo's. Nine out of ten repo's have multiple offers on them. A lot of counter offers that I receive from the banks ask for my clients to come in with their highest and best offer to even be considered. Four homes I have written offers on have been on the market for less than a week. When it is a good deal the home goes quick. Many banks receive multiple offers on properties and actually wait to respond so that they can get as many offers as possible to review; it is in the banks best interest to wait. In Riverside, last month, 11% of the homes sold were bank owned and in Moreno Valley 25% were bank owned.
So why is there such a change in the market? Easily put, a lot of people have been sitting on the sidelines watching prices go down. But, now they are seeing prices and interest rates go down. After awhile it is too tempting to sit on the sidelines anymore. Some of my clients that I have been communicating with for over a year are finally ready to buy, and they are buying repo's.
Many first time buyers are rushing into the market to snatch up these great deals. The deals are not without some frustration. The bank could take 3 weeks to respond to you, the counter could ask you to give up a lot of guarantees, and you typically buy the property "as is". I know there is still bad news coming from the media, but we are seeing more positive numbers each month. I will keep you posted on what is happening. For those of you still sitting on the fence, don't wait too long. Once prices start to level out and home sales increase, interest rates will start to climb.
Sincerely Kevin Williamson with Coldwell Banker Shepherd Group www.williamsonteam.net