There is so much information out there about real estate. Unfortunately, most of it is about selling news papers or advertising on TV and Radio. For many of you who live here in the Bay Area you are familiar with the concept of “micro climates”. The same applies to our local real estate market. There are some areas that have definitely become buyers’ markets (Berryessa and Santa Teresa) and then other areas that remain strong sellers’ markets (Willow Glen, Cambrian, and Almaden).
What makes a buyers’ market vs a sellers’ market? Again, it is area specific but for the Bay Area the main driver is inventory. When there are more houses on the market the competition climbs for sellers. Compared to 2006 there are about 100-150 more houses to choose from in the Santa Teresa neighborhood. This give buyers more choices and therefore they are more selective in the house they choose and the price they will pay.
Nationally, the sub-prime lending market has created change as well. With lenders tightening the purse strings and becoming a more selective on approvals for buyers, there are fewer first time buyers out there to purchase. Yes, supply and demand is definitely in control.
I will keep you updated as I see changes in our local market. I will also use this space to share information that will both buyers and sellers reach their goals. As I said, there is a great deal of good information out there about real estate, the market and how it relates to home ownership. If you have a particular interest or question, drop me a line at CJ@CJBRealEstate.com
Until next time.