What a great time to buy a home!?
Ok, here’s a dose of reality. July isn’t setting the world on fire with the number of homes going Pending Sale. Inventory isn’t going down much in any city and in most it’s growing to levels we haven’t seen this decade. We have August and September which are traditionally months with active buying/selling (excpet for last year) and then we start going into the slow down season which lasts until January. It’s unknown what will happen in 2008 but what I do know is that there are motivated sellers out there right now wanting to sell their home THIS YEAR. We’re starting to see some of those motivated sellers. For example, a home came back on the market today in Los Osos. A 2 bedroom that originally came on the market last June (2006) for $425,000. It’s now listed at $329,000 with new paint (inside and out).
It’s anyones guess if we’re going to start seeing some homeowners doing significant price drops as we start getting closer to the traditional slow time of the season. Who knows, this may soon be the bottom of the market that people have been waiting for and 2008 starts to rebound. If that’s the case, then buying in the next several months would be the best thing to do.
This doesn’t mean that all homes will drop in value. Because of the diversity of our area, there are some homes still in high demand because of location or things like a great view. I would expect to continue to see these homes come on the market and sell at prices set from previous years.
But, those sellers that have 10-20 other comparable homes on the market competing for the one or two Buyers in a particular month will need to do something to get one of those Buyers to want their home. Some sellers are still in denial that the market has changed or don’t have strong motivation to sell and they will probably be the ones that are still on the market come next January.