Fewer homes on market spurs competition among buyers.
More move-up and first-time buyers joined investors and second-home purchasers across the Coachella Valley to stoke sales in October, 2012, even as prices rose for the
eighth consecutive month, two new reports showed. Today, nine months later,
prices continue to rise and foreclosures continue to fall as inventory
continues to shrink!
The dearth of inventory means “multiple offers appear to be the new normal,” and even some of the higher-priced properties are experiencing such buyer competition.
With valley home inventories down dramatically from previous years — including distressed properties — there is more competition among buyers looking to get in on the best deals as prices continue to rise.
Short Sales and Foreclosures are “drying up” as well. What used to be the “norm” is now hard to find. The pace of foreclosure sales has marked a five-year low.
Higher buyer demand triggered largely by ultra-low mortgage rates and a dwindling supply of homes has helped push up prices, desert real estate professionals and analysts said. There has also been a change in the types of homes selling, as foreclosures account for a smaller share and move-up homes comprise a larger share.
“The market continues to show heavy activity,” said Kevin Stern, president of the Palm Springs Regional Association of Realtors and Desert Star Real Estate.
Due to this rising market, appraisals are offering a real challenge to buyers, lenders and agents. Many appraisers are being overly cautious which is causing additional problems for Realtors, lenders and buyers.
If you are a seller, realize this is an excellent time to put your home on the market, bit price it realistically. If you are a buyer, realize the days of “low-ball offers” is a thing of the past and you’d better get pre-approved beforehand and be prepared to offer “over asking price” in many situations…or you’ll lose out on a property that will continue to rise in the years to come!
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IMPORTANT: If you or someone you know is interested in buying or selling a home in the Palm Desert Area, try searching properties on the same Desert Area MLS Realtor’s use, or give me a call….or visit my website at Palm Springs Homes and Estates. I will be happy to give you or your referral my “red carpet service.” After the sale, I will send you a $50 Gift Certificate towards dinner in a fabulous Palm Springs Area Restaurant so you can celebrate!
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