Most housing prognosticators have forecasted a semblance of normalcy for the overall recovery in 2012. As the glut of good news continues, home buyers are stepping up in an effort to take advantage of great home values, before they start ticking up. The lure of historical low-interest rates have kept buyers focused on buying sooner than later. In many cases, there’s one important missing ingredient, where’s the houses. The dilemma for many buyers today are the minuscule number of properties to choose from. With such a long loan commitment, who can blame a buyer for waiting for the right home and not just accepting an undesirable second chose.
The unfortunate aspect with limited inventory and gobs of buyers are many of these prospects are interested in the same property. This scenario has created multiple bids on a number of homes. The quantity of homes will pickup as we move into the Spring and Summer months. The supply of buyers will also increase during what is considered the buying season, assuming interest rates do not escalate. More than likely we will continue having many buyers with the same good taste bidding on the same property.
Some homeowners that have hesitated selling for various reasons have filtered back to the market, with the goal of down sizing or purchasing a more spacious home. These owners have gotten wind of the upsurge in buyer activity and are taking advantage of the situation, along with the ridiculously low mortgage rates. For the last five or six years, sellers had no ability to call their own shots, buyers were in complete control. Sellers now have some sense they are in control of their own destiny.
The foreclosures and short sales will plaque the market for the next few years and many owners either can’t or won’t compete against those market-busting properties. Those under valued homes will probably keep many traditional sellers on the sidelines for the time being. Some markets with fewer distressed homes or short sales, like Davis, California have stabilized more quickly than our neighboring communities that have a majority of properties under-water or bank-owned. Buyers will continue battling other buyers for the same well priced homes and those sellers will be gratified for the clout they now possess. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities.