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We are almost ten years into the most incredible real estate
market cycle in history, anywhere and the mid peninsula is
the eye of the storm. Even though most say it’s
a sellers market, guess what, record appreciation year after
year, new hybrid mortgages and record low interest rates have
made it the best time to become a real estate investor or homeowner
in history.
The expectations and mind set of buyers and
sellers and how real estate is marketed, bought and sold has
probably changed forever. Properties are marketed
on the internet to millions, realtors multiple listing information
is available to the public, buyers are pre-approved, almost
all sales are “As-Is”, multiple offers, offers
over the asking price, quick closes, few or no
contingencies
and free rent backs to sellers! If that’s not enough,
clients are paying thousands of dollars to have a professional
decorate and stage their home before they go on the market
and guess what? It works! Some buyers are so taken with
this method that it is an absolute fact that this nets the
sellers more money, better offers, and quicker closes of escrow
in many cases.
The market continues to be very strong
and active in almost all areas and price ranges. Historically
since 1997, January through May has been the best time to sell,
ultra high demand and near insanity offer-wise. During
the following summer and fall months the market has slowed
and stabilized only slightly without prices really decreasing.
Increasing inventory, school being out, summer vacations and
busy bay area lifestyles seem to be the main causes. Once
Halloween comes around, forget it, even though inventory is
low and sellers should be more desperate, interest from buyers
seems almost non existent. Bad weather and the holidays
seem to be obvious reasons, but only once during this run in
2001 did prices dip in the last quarter and that seemed to
have been much more a reflection of 9-11 and plummeting
stock market and once January 2002 rolled around it was going
like gangbusters again. As for now and in the near future
the market appears very strong and there does not appear to
be any reasons why these patterns and trends won’t continue.
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