We will see a “spring bounce” in 2008? Typically the best time of year in real estate is spring. Spring is not far away – March 21st is the first day of spring and that is only a few weeks away. From my experience this is when sellers start preparing their homes for sale and buyers start getting ready to find their new homes.
So far this year I know of several sellers that are getting ready as we speak/blog to put their homes on the market. And open houses have been trafficked well lately! These are both signs that the typical spring cycle is heading toward full bloom! Right now here in the Hollywood Riviera – there is very little inventory – only 22 single family homes for sale. Typically we will see a larger number as we move into spring, but the buyers are usually buying them so the numbers will remain constant. There are 5 SFR homes in escrow right now. This is not bad for a “winter” market.
I have spoken to several agents lately that have told me that they lost out on offers for their buyers due to multiple offers – yes, I said multiple offers. I personally lost a deal a couple weeks ago because their were multiple offers and so did Laura. The one I lost out on was a REO – the bank priced a townhouse well below its market value and there were 8 offers according to the listing agent. The one Laura missed out on was also an REO and the listing agent on that deal told her there were 20 offers. That house had been on the market forever too – then they reduced the price to something well below market value and boom – multiple offers. It makes one wonder if this isn’t a great strategy for pricing? Can you “underprice” a house? It would appear not.
Back to our spring bounce – real estate is cyclical and hopefully 2008 won’t be any different. So far, I feel it is going just as usual – my phone has been ringing more than ususal – but typical for spring! This is good news!