April 2010 Update, It’s a Good Spring Market!

It has been a good year for real estate so far, unless, of course you are trying to buy.  Doesn’t make sense?  Look at it this way.  Few people bought last year even if they were thinking of it.  The market just seemed too risky.  But the demand was still there and now that the economy is on more solid ground, buyers are coming back into the real estate market in healthy numbers.  In fact, half of the sales on the Grubb Company board in the first quarter sold with multiple offers. 

Of course, there are incentives.  Low interest rates for one.  Tax credits for another.  Just when the federal tax credit approached expiration (at the end of this month), the state of California stepped in and offered their own tax credit for qualified buyers.  And prices in most of our neighborhoods have stayed relatively solid, making those homes look like safe bets and homes in nearby neighborhoods that have taken more of a hit look like good buys.

The problem in our area is that there are very few homes for sale relative to the demand.  Seller awareness just hasn’t caught up with this new demand in the market.  And that means that sellers who also want to buy in the area have little to choose from, creating something of a bottleneck. 

So, if you are thinking of selling any time soon, now is a good time.   Just be sure you price your home carefully, because buyers still won’t overpay.  And they are looking more carefully than ever before at condition.  So dry rot under the stucco will definitely bring the demand down.  As always, it is very important that your house look nice when it comes on the market and has great photos on the many, many websites that buyers use. 

If you are a buyer, work closely with your agent.  We hear about houses that are for sale, often weeks before they come on the market, can guide you to the best buys and negotiate carefully for the best price.  And if you are planning to both buy and sell at the same time, either use the same agent or make your listing and purchasing agents together work closely.  Enjoy your new home!

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