House hunting? It’s Not a Buyer’s Market In All Cities

Lakewood, California

By Bernie Germani

 This is what I see going on, some potential home buyers, especially first-time buyers, may be misinformed about today’s market, believing that ALL sellers are desperate and will accept any offer.  However, in many desirable, middle-class neighborhoods, bidding wars are prominent and buyers often have to make offers slightly above the asking price.

MAKING SENSE OF THE STORY FOR CONSUMERS

•  Although California’s median home price – the price point where half of the homes sold for higher and half for lower –  was 39 percent lower in March than a year ago, many of the sales taking place are in areas, such as the Central Valley and the Inland Empire (Riverside and San Bernardino counties), which have higher foreclosure rates.  These regions offer home buyers better opportunities to purchase homes at extremely low prices.

• The housing market is often characterized as having three pricing segments: under $500,000, $500,000 to $1 million, and more than $1 million.  Homes in the under-$500,000 segment have accounted for the majority of the state’s price declines thus far.
• As real estate is local, a home in one neighborhood with the same square footage and amenities may not sell for the same price as a comparable home in a neighborhood one mile away.  By working with me a California REALTOR® familiar with a specific area, home buyers will be able to submit reasonable offers that are more likely to receive seller approval.