Lee Ginsburg, who won Agent of the Year at our office, Prudential California Realty, weighs in on why the housing inventory is at an all-time low yet home buyers are at an all-time high:
"The lack of available homes for sale along with the strong job market bringing lots of qualified buyers are driving prices up in San Mateo County. Inventory of available homes is down substantially in San Mateo County as compared to a year ago.
I think this might be the new real estate environment for years to come. I say that because the recession we just got out of has scared a lot of people. It has made them be more conservative financially. In my opinion that is a good thing for the long term. Similar to when our parents or grandparents went through the depression. That thought stayed with them for a lifetime. In the past people owning an $800,000 home would step up to a $1,200,000 home or the person with a $500,000 home to $800,000. Yes people are working today in San Mateo County but they remember just a few years ago their job and home were in jeopardy. When the thought of moving up to a larger home with larger payments comes up, it gets shut down very quickly. People are staying put, they are comfortable, their home is good enough, they do not want to take the risk, they don’t want to live for their mortgage, and they want to save for that rainy day. I think that thought will stay with us for quite a while.
Seniors used to be a good portion of sellers and that is decreasing. Seniors are remaining in their own home longer, because they are healthier or by having live in assistance. Some are choosing to rent it out rather than sell.
In the last few years when the economy was not as strong and homeowners were not able to make the payments, foreclosures and short sale made up 35-50% of local sales. I am very happy to say that era is over, gone, finished. Our San Mateo County employment is very strong and with rising prices most people have equity in their homes and can make payments.
In summary we have lost three major home sellers: the move up seller, the senior, and the banks. I believe we have to adjust to a new Real Estate environment. I do not see a major change in the forefront.
To home sellers on the border line of selling or not selling, I suggest contacting your real estate agent for a value and then discussing with your options.
To home buyers facing multiple offers and all cash buyers; I say stay with it! Find a good agent that knows the area and the other agents. Everyone wants a deal and today the deal is interest rates. They are at their lowest point in the last 4- years. Don’t pass it up. Home ownership is the first step to financial freedom."
Please do not hesitate to contact me with any questions relating to buying or selling in San Mateo County. 1-877-Lee-Sells.
Lee Ginsburg, won Agent of the Year at our office, Prudential California Realty, San Bruno. It was an honor voted by our co-workers.
Karin Cunningham, Prudential California Realty 180 El Camino Real, San Bruno, Ca. 94066 My phone: 650-438-3504 Email: firstname.lastname@example.org Website: www.KarinCunningham.com Blog: www.facebook.com/sanbrunolife