July Market Update

“I like to see a man proud of the place in which he lives. I like to see a man live so that his place will be proud of him.” – Abraham Lincoln

Happy 4th of July folks! We are in the thick of the summer market and we’ve got a mixed bag of what’s out there. Out touring homes, I am seeing more and more dramatic price reductions, but I am also seeing some properties fly off the shelves, with offer dates within a week on the market. When I ask the agents, “Why so soon? My clients haven’t even seen the place and you’re already taking offers.” I commonly get a similar reply, “This market is so wonky, my clients don’t want to take chances and prefer to strike while the iron is hot,” said one Peninsula agent about her Beresford Manor home. Her listing was priced about $200k below market value and got 7 offers and 27 disclosure package requests. It ended up selling 20% above the list price, right around or slightly above the sales price of similar homes in the area.

The key to do well in this market is to price your home attractively and make sure the home looks its best when it goes live. Sorry to say, but a lot of buyers of today don’t have an imagination. They either need to be lured by a teaser price or need everything turn key. Buyers, if you can keep an open mind, there could be some deals to be had. One property currently listed in San Bruno, looks great on paper. Nice neighborhood, fantastic views, good schools…why has it been sitting on the market for 40 days when other homes in the area are sold in a week? The home is priced at market value. The listing remarks say to come take a 2nd look. The bathrooms are now remodeled and new windows and doors are being installed in a couple weeks. They’re playing catch up. Sellers, don’t play catch up. Be prepared when you hit the market to look good and price accordingly. Buyers, if you see something like this and the seller is motivated enough, this is the opportunity to buy without competition. My opinion is that if the home has been on the market for more than 3 weeks, you may be able to get a deal. If it’s 10 days or less, it’s too early to underbid.

On the loan front, I’m hearing from our lenders that they’re bogged down by refinances. Since the rates went down, a huge influx of refinances hit and clogged up the banks. The banks then raised their rates to slow the influx of applications. BofA, for example, should be at around 3.65%APR for a 30 year loan for a primary residence, but since they are so busy the banks decided to raise their rates to the 4% mark to slow it down as they catch up on the refinances. These refinances are those who bought last year in the mid to high 4% range. I just did a refi on an investment property and got a 4.125% 20-year loan at no cost. Why not? If you are reading this and bought a home last year, feel free to reach out and we can refer you to a lender that may be able to reduce your payments. We are here to help!

It’s a holiday, so I will keep this blog short. Please just reach out to us if you are in the market to buy or sell! We will make sure you’re well educated so you know what to expect! Have a happy and safe Independence Day! GOD BLESS AMERICA!