"What's Happening In the Housing Market?"

Every day I hear, "What's Happening In the Housing Market?"  I wear my Realtor badge wherever I go - for the most part - and it is an open invitation to anyone who sees me to ask this question, or turn the other way, or just ignore the subject.  That's great!  I hate when someone pretends to be interested in me then asks if I would like to hear about a revolutionary new product or service.  It's a sneak attack.  I don't do it.  I don't knock on doors, because I don't like responding to strangers at my door, especially when I have to get up from the table, my work, or playing with my grandkids.  Ditto for sales phone calls.  Gotten any annoying political calls lately?

Look, I know lots of folks who do use these sales practices - with success.  I know people who welcome the at-home service, and I respect that.  But I'm a people person.  I carry my knowledge around with me, and invite people, through my badge, through my car signs, through OPEN HOUSES, newspaper ads, flyers, blogs, all kinds of methods to hit on me about Real Estate. 

Every day I further my education, reading the latest from the California and National Associations of Realtors.  Likewise, Altos and similar reports about what has sold in the last week.  I constantly interview other Realtors - them I don't mind being pro-active with, sharing information.   I always think we are all playing in the same orchestra, just different instruments.

I started this blog to INVITE YOU to ask questions, tell me your observations, share your experiences with others who visit here. If you need comps on your house, rentals, yes, I do rentals, too, research on the deed to your home, or info about foreclosures, short sales, bankruptcies, or any facet of Real Estate,  I can help or direct you to an expert, just ask.  If you'd rather ask privately, call me at 619-871-9333.  Or, send me an email:  ncanf@san.rr.com.  Or, visit my website, www.NancyCanfield.com.  My FaceBook page for Real Estate is http://www.facebook.com/pages/RanchoBernardoPowayRealtor/130083937009630?sk=app_115103735258074 . But honestly, I'm most active with e-mail because I can acknowlege your inquiry with an answer, or that I am researching it.

So, let's get started with some useful information.  Every day, I plan to post a bit about RE and if you want or need more info, just ask.  I'll get you the info or the contacts.

Today's soundbite, well, nibble, addresses the question "What's Happening In the Housing Market?"  First, define the market you are interested in.  What is happening nationally, from state to state, city to city, even community to community, is vastly different.  Locally, we've been enjoying brisk activity! Overall, inventory of homes for sale is very low throughout San Diego.  Why?  Well, some reasons we know, some we think, and some mystify us.  Here are some big ones.

1.  Real Estate has been roughly a seven year cycle of highs and lows for as long as the associations of Realtors have been keeping records.  So, it's 2012, seven years ago was 2005, commonly considered the top of the market, where the big fall began.  What happened to all those houses that should be slamming into the market right now?  Many of them are the short sales and foreclosures that have been flooding the markets and keeping prices way, way, down for the past few years.  People who struggled to keep their homes, or gave up and walked away.  Many fought the banks, but the banks won.

Those who have ruined credit scores because of the experience, can't buy a new home for two to four years, so they have to rent.  Meanwhile, others who've clung to their homes like a life raft, and need to move, find home prices are terribly depressed by all the shortsales and foreclosures.  So, they are renting them out until prices go up in a year or two.  Talk about a win/win situation.  Likewise, investors who were buying homes to fix up and flip (resell in a short time for profit) are now buying homes to use as rentals.  Another win/win situation.

However, none of this helps the people who are looking to buy homes and finding them absorbed as rentals. That's a major reason why there is such a shortage of inventory!  And as we all know, Supply and Demand are a teeter totter:  When there's lots of Supply (homes for sale)prices go down.  When there are few homes available, competition, and therefore prices, goes up, up, up.    In the past couple of months, I've been showing homes to lots of buyers.  Increasingly, homes in some areas especially, are getting multiple offers, and selling before we have a chance to see them.  I urge you, if you see a house you like, get over to see it as soon as posible.  Don't wait till the weekend, go at lunch time, go after work, that's when I'm doing most of my showings.  By the weekend, it might be too late.

Also, the days of bartering the prices down, for the most part, are pretty much past.  Of course, check the comps before you offer.  If a home is seriously over priced, decide what you are willing to pay, and be prepared to walk away.  I'll talk about short sales and foreclosures in a separate blog, but for now, I'm lumping them in with these generalities.  And be prepared, cash is still king.  Lenders are very nervous, and often loans don't make it through the escrow.  So if a cash buyer with a good offer comes along, you will often, but not always, lose out. 

Ok, that's enough for you to absorb for today.  Look for future blogs picking up where we are leaving off.  Others will focus on what to expect with foreclosures, short sales, Bank owned properties, Fannie Mae and Freddie Mac owned homes, rentals, and other related topics.  Meantime, if you need help, info, please contact me, I'm always happy to help.