Apr 8, 2008

PLEASE LISTEN - The Market is Changing

Hello Neighborly Realty friends and clients,

Every offer we've made in the last few weeks on Short Sale property or bank owned (REO) property has been rejected.

I have 9 active families right now trying to buy homes. Everything we've offered on has been rejected - in some cases, even when the offers are all cash !!


Short Sale properties and REOs - that are in decent condition - are getting offers above or at list price. Our offers are being beaten by higher priced offers.

Now, if a client wants something that is in poor condition, there is still inventory to go after. But for the most part the good homes are going into escrow. Even the poor condition homes are getting offers quickly. We offered on one home in Roseville that was truly trashed, yet it's $215,000 list price pulled in offers in the $280,000 mark! The home is worth roughly $310,000 - $320,000 in nice condition.

Another example in Roseville: A beautiful bank owned 2400+ square foot home listed at $379,000. We offered on it within just a few days of it going live in MLS. We lost on that one too. The home had several offers above list price, from buyers not even in the area (these buyers were on the East Coast).

What about "standard" transactions (family to family sales, not REOs or Short Sales)?

My own listing in Rocklin SOLD IN 13 DAYS !!

My clients and I were stunned ! (happily)

Legally I can't disclose the price we've agreed too... but it is VERY close to asking price.

New Construction?

We've had a few builders in Roseville actually raise prices! ...and when I've walked in to try and get a deal for a client, they've basically sent me away empty handed.

What does this mean?

At the micro-economic level, this market is changing. It's changing fast. Pent up demand is starting to jump. Inventory levels will be dropping. It matters not what the local news is saying... actual data from my own listings, my own offers, my own clients, and my own phone calls to my fellow Realtors shows that this market is changing.

I genuinely believe we have bottomed out - or are about to.

- Jim

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