Buyers beware…
Buyers beware…This Buyer’s market is getting a bit unfriendly to Buyers.
I am working with Buyers around the East Bay area from Antioch, to El Cerrito,to Dublin, and out to Livermore. In all of those areas the lower price-point homes are selling with multiple offers in a short time.
I saw a home in last week in Antioch which had 31 offers!
It’s no longer reasonable to make low offers on most REOs (bank owned properties). The banks are finally pricing correctly and many of the new listings are selling quick.
If you want to buy one of these great deals you need to make a solid offer and be ready to take action quickly if you see a good deal.
Here is a chart I made showing the ratio of Active to Pending listings in Dublin for the past 3 years.
Compare June of each year (vertical line)
We have lower actives (light blue) - fewer homes on the market
We have strong pendings (dark blue) – more homes being sold
The ratio (black line) is lower now than in 2006 or 2006. This indicates a tighter market and is a componant in determining overall strength.
But wait…this is happening because prices have dropped 25% from a year ago. None of the information above points to price increases, only active sales of the available inventory. It should help us dig through the backlogged inventory of homes and work towards a healthier market in the East Bay area. Remember that a “healthier” market could have lower or higher prices.
Health is a matter of balance, stability,growth, and rational behavior.
I have a simple question for potential Buyers: What are you waiting for?
When you are ready to buy, call me at 925 336-6462
Eric Haggin
