And prices are going up a lot as a result.
Across the Bay Area, buyers are fighting for a limited supply of new and existing condos.
Several factors are combining to create this situation:
- investors have already snapped up many foreclosures and short sales and are renting them out.
- homeowners who might sell in a typical market are either still on the sidelines watching prices rise or are underwater and can’t afford to sell (much fewer now than yesterday!),
- those homeowners who do want to move up cannot do so, as they question rightfully their ability to purchase a "replacement property" in this one-sided market (the lack of bridge loans does not help),
- demand has been growing, because of the good job market in the bay area, and also - interesting trend - because many buyers who went through short sales or foreclosures are becoming homeowners again, thanks in part to loans from the Federal Housing Administration.
- finally, as housing starts have risen in the past year or so, home sales haven’t kept up. The gap suggests that builders are overwhelmingly building for renters, not buyers. This trend is better studied in this article by Nin-Hai Tseng of CNN.
Need to know the value of your condo? Do not hesitate to contact me,
Thanks for reading, as always!
Francis
Trends: Local prices and graphs.
Coming soon: The Peninsula French Fair - Art, food, and good company!!
Sat. March 23rd, all day.
Coming soon: The Peninsula French Fair - Art, food, and good company!!
Sat. March 23rd, all day.