Urgent Housing Market News

The first quarter of 2009 has come to an end and the low end of the real estate market is on fire. I had seen multiple offers on properties that are on the market for less than a week, and offers were a lot more than the asking prices. The median home and average home prices across the country have rising.

The shift in the real estate market has already begun. The buying trend is going to continue, as long as interest rates stay as low as they do. Here are what driving the housing markets:

• Interest Rates are at 40 year lows
• Fewer sellers are putting their homes for sale because they are modifying their home loan instead of selling
• Majority of short sales have now become Bank Owned, which are much easier properties to purchase
• New Administration is showing hope that a recovery is in sight

The housing statistic I have reviewed are showing that some part of the markets will not let prices go lower. Every time we have multiple offers, there are buyers left looking for something else to buy. Regardless of what people are saying, homes are selling in the bay area and we continue to see more demand than supply in the near future. Remember, for each rise in interest rate by 1%, your affordability drops by 10%.

Enjoy the rest of your weekend and if you know of a friend, co-worker or family member who really wants to buy a piece of property and needs some sound advice, let me know by calling me at 408-835-7743, or emailing me at alan@i2realty.com