Have you ever noticed that home buyers today are becoming more and more frustrated with the housing market. They understand that in most markets, prices have come down (from a little to a ton). They also understand that the numbers of home sales is off (by 20% to much more). Buyer’s also don’t want to be the one at the dinner party to fess up to buying a home at the peak of the market. They don’t want to look stupid to their friends and lighter in their pocket book. Given that most signs point to a favorable buyer’s market, a sizable pool of these buyers still remain on the fence. Why? At what point do home buyers come back with more diligence?
Call me dumb, but I don’t think buyer’s liked the “good old days” of multiple offers. There are signs that the multiple offer is making its way back into our local real estate scene. I’ve been involved recently in four multiple offer situations on properties in Mountain View and Los Altos.
Do buyer’s need to see inventory significantly rise?, which might give them more options. That scenario is not likely to happen. Whether its a strong market or a weak market, our inventory doesn’t change dramatically like it does in other areas (ie. central valley, east San Jose foothills, or the south Santa Clara valley).
Are buyer’s waiting for interest rates to bottom out? Could be, but rates are still quite competitive. The bigger problem is that lender’s are still slow and difficult to deal with.
If you are a buyer looking in the Los Altos, Los Altos Hills, Sunnyvale, Cupertino, West San Jose and/or Campbell markets, I personally think now is a good time to buy as long as your holding period is at least three years. Hey, don’t trust me. Coldwell Banker (obviously a non-biased source) just came out with its own top ten list of reasons buyers should consider buying a home now. Some of the reasons are quite valid, others not so much. You decide!