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April 15, 2008

Let Me Be the First to Say it...

The news today isn’t the best.
I’ve just made the rounds and from what I heard from some of the Bay Area’s top agents, “Spring has sprung." The Spring rush is over, and get ready for the Summer slowdown sooner than later. For now things are dead.

A bit harsh, but that’s what I’m being told...

One agent who works in the rarified air of the elite City top sellers has told me she’s advising her clients to wait till next year already. Because as they put it. “Things are not going to be moving.” “There’s not going to be a big September, the buyers aren’t going to be there.”

The City was best described to me this way...

--If it has a view of the Golden Gate, it’s hot.
--If it’s a condo between $1,050,000 and $1,300,000 it’s dead.
--Condos in Pacific Heights priced below $1 million are in demand.

Sellers still seem to be out of touch with reality...One condo seller who did get multiple offers decided not to take any of them because the offers failed to reach the goal the seller had set of $30,000 over asking...Sellers are just holding out for more and it just isn’t there...instead they’re letting offers just sit....

Sellers are are being advised to follow the old cliche: The first offer is probably going to be your best offer.

Buyers are nervous too. It’s an election year, money is tight and the tax man cometh. But most agents I spoke with also blame the all the bad press. It’s hard to buy when all you hear is the bad news, they say.

So who is buying? Those with CASH... Everyone seems to tell that exact same story... Back in early March Eva Stoyanov of the thesfteam.com reported on her discussion board she was seeing the same trend -- a lot more cash offers... The buyers in this market are renters, people who don't have a house to sell and those who want a home as opposed to folks who just want to flip the home as an investment.

Buyers are making it a habit to coming in under asking ... If your home is on the market three weeks don’t expect anything but low ball offers. Homes that sit give off the scent of “there must be something wrong.”

The new buyers are the ones that sense the shift, that they’re in a position to take advantage of, yes you heard it here first, A BUYER’S MARKET.

There I said it. Now you can officially say it’s a buyer’s market. You can quote this blog.

Posted by Jeff Brooks on April 15, 2008 06:40 AM | Permalink

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