Is the real estate market a bit like a shark feeding frenzy now? Some would say YES! If you are a home buyer, most certainly you know multiple offers are becoming the norm again if you’ve been been active in the home search process. Why is this you ask? Low inventory!
As we approach what is traditionally the “hot” spring housing season, we are seeing the demand for homes outstripping our current supply. This results in mostly happy sellers, stressed out buyers and a whirlwind of activity around many listings. Multiple offers is no stranger to our Bay Area market but it’s been a while that we’ve seen it quite like this.
Take a look at just this trend chart for the real estate market in Concord. Take a look at how the pending sales are outstripping supply. Take a look at the inventory levels. Year over year, we have a full 55% fewer homes on the market in Concord as an example! Wow. When you see these numbers, is it any wonder that buyers are probably having to make several offers before getting a home? A listing I have in Antioch received 9 offers, 7 of those all cash, all but 1 were investors.
To make it tougher now for first time buyers or those with FHA, VA or other conventional financing, our low prices are attracting the investors, and there is still quite a lot of all cash investors. It makes it sometimes difficult for a first time buyer to compete. And yes, this little bit explains the photo here in this post. I heard a saying once about investors, that “when there is blood in the water, sharks come out.” And they do. We’re at record low prices, record low interest rates, and a climate ripe for investors. In my next blog post I’ll talk about how to position yourself as a buyer, and as a seller, in this multiple offer market.