Real Estate Trends

By Joel Perez

I’m sure most active buyers realize that we’re now having a shortage of inventory. With fewer houses for sale, it makes it real difficult for a buyer to get an offer accepted. So, my advice is to have a lot of patience in this market. The principal of supply and demand is in full effect. There’s just not that much supply and there’s a huge demand, so I convey that to my buyers. I advise them to be patient and do my best to reassure them that we’ll be able to find them the house that they want; it just might take a little longer.

Q: Who are the biggest competitor’s in today’s real estate market?

A: If you’re a financed buyer, if you’re an F.H.A. or even a conventional financed buyer, the investor’s are taking the majority of houses because they’re getting the winning bids on a lot of these houses.

Q: Are most investors bidding below asking price, at asking price or above asking price?

A: Most investors are coming in with all cash and cash is king. Sometimes they do come in over asking price, depending on that particular market. I’ve also seen them come in below asking price and a seller will take it because it is a cash offer.

Q: Why is it important to have a real estate agent who has lots of connections in today’s market?

A: It really behooves the buyer to have an agent who is well connected, that knows the inventory and has good relationships with other agents, where they may have done transactions together in the past. I always let other agents know that I have a buyer that’s looking for a specific type of property, so once they come up with a listing, they will think of me right away. The market is ever changing, so know it would really be to the benefit of the buyer to have an agent who has those relationships, understands the market and can employ some of those strategies.

Q: How much inventory is available in today’s market?

A: Right now we’re looking at a lot of areas where there is less than a month’s supply of inventory, which means that it is a very tight market. Under normal times, we might have a two to three month supply. When we had the big foreclosure boom, we sometimes had a six month supply, so the pendulum has really swung the other way and we’re probably going to see this trend continue for the remainder of the year. This inventory shortage is driving home values back up, with the median price for a home in Sacramento County up 19% from last year (January 2012 to January 2013), according to Data Quick.

Q: Why should buyers choose you to find a home for them?

A: I have several years of experience, I know how the market has changed and I’ve adjusted to the market, so I know what strategies work best for my clients. I’ve lived and worked in this community my whole life, so I understand the local market and I have a natural interest in seeing our community thrive. It’s a special feeling to think that you might be a part of that and also help people achieve their goals, whether it’s buying or selling a home.