Twice in the last week we’ve had real estate articles on the front page of the Contra Costa Times, sister paper to the San Jose Mercury News. First, it was a story about Home Staging and how it has become the norm to do extensive de-cluttering and staging of a home before putting in on market.
Now comes an article named “Feeding Frenzy in the Housing Market”. Why two front page leading articles on real estate in a week? Because it is hard to believe what is going on in the real estate market these days! You have to see it to believe it, and that includes agents as well, lol.
The average time on the market is down 25% in the last six months, according to The Times, and six months ago there was even less inventory. The graphic in the article isn’t too far from the truth for some transactions with its Open House – Sale Pending – Sold, all in one day, scenario. Here is the timeline on our most recent transaction with we listed a couple of weeks ago:
- Listed on Thursday
- Brokers Open on Friday
- Open House on Saturday and Sunday
- Offers Due on Tuesday
- Multiple offers way over asking price
- In Contract Wednesday
That is only 6 days and it could have been shorter if we accepted one of the offers made over the weekend… Of course we’ve been on the opposite side of the coin as well, with some of our buyer clients have to make many offers before one is accepted. So what is driving these speedy sales? There are two main factors driving this fast market right now:
Inventory. Especially of what we refer to as “the creampuff”… A really nice home in perfect condition in a great location. If you have one of these, and it doesn’t have to be big or fancy, it is going to sell quick right now with the right de-cluttering and staging. Inventory is surprisingly lower that normal right now given prices and interest rates, but these higher rates mean the next home is going to be more expensive for the seller as well, and there is a fine line for them to consider. Bottom line, if you have been thinking of selling your creampuff this year, now is the time! If you are trying to buy a creampuff, realize you are going to have a lot of competition so be fast and flexible in your offers!
Cash. Especially foreign cash. All cash buyers represent between 20-25% of home sales around the Bay Area right now. And if a buyer doesn’t have all cash, there’s a good chance they still have a lot of it. We’ll typically see offers with 30-70% down just as often as those of 20% down or less. With a low cash offer you are going to want to package it the best you can in every other area – shorter or no contingencies, offering a rent-back, writing a detailed family profile with pictures and they better get a call from your lender.
The article can be found online here. We would be honored to work with your friends or family, if you can think of anyone who might benefit from our services please call me at (925) 487-2354 or email me at firstname.lastname@example.org so we can discuss how I will give them the utmost care!