Just curious...I've talked to a few investors who are still waiting for the bottom, or the next flood of new foreclosures to hit the market and thus more falling prices. I even met one investor who isn't ready to buy because he's worried about Swine Flu's effect on the local economy. How insane is that. But it seems the bottom of the housing market in this area has come and gone several months ago. In my area Murrieta/Temecula inventory is at an all time low of just 2 months of inventory as of June 2009. Even Hemet/San Jacinto inventory are at an all time low of only 2 months inventory; last month there was 3 months of inventory in Hemet and now only 2. There should be 6 months of inventory in a healthy market, so the current inventory levels indicate that buyers just can't seem buy even with cash offers. The Southwest Riverside housing inventory for June has decreased 15% from May, and decreased 31% from April.
Median prices and sales volume between April to June were stable which indicates demand remains high while inventory is plummeting. There are so few homes available for purchase and multiple offers are common on bank owned properties well above asking price -- not just a few offers, I'm talking 15 to 20 offers per listing most are above the ask!
Are SoCal investors still waiting for the big flood of inventory and lower prices? Or are you scratching your heads wondering if you've missed the bottom and can't seem to get any of your offers accepted?
Not only are they releasing REO inventory more slowly, they are taking back fewer homes. They are doing everything possible to prevent this "flood" of new inventory and they are doing a good job of it.
With my listings, I've experienced a significant increase in calls from prospective buyers in the past month as compared to 2 months ago. I only return maybe 1 in 4 calls on a property because I just don't have time to to talk to buyers.
Should we get over the doom and gloom? Can we really go from 2 months of inventory now to back the 12 months of inventory we had in 2008? I doubt it. Not when HGTV "property virgins" shows on how a poor minority woman got a federal grant of $35K to purchase a brand new energy efficient home for $185K with no money down. With government tax credits and programs to help first time buyers I just don't see the doom and gloom. We would be lucky to get back to a "healthy" market of 6 months inventory. That means supply has to outpace demand 300% to get back to 6 months inventory. At these prices there's plenty of demand.
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http://sdcia.websitetoolbox.com/post?id=3545874
the responses are entertaining.
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