It is no secret that the economic situation continues to deteriorate. Job losses continue to be reported on a daily basis and consumers are cautiously watching their spending. Banks continue to hold onto cash and tightening on issuing of credit. Unfortunately, these activities are both needed in order to jump start the economy.
On a more micro economic level, in the Silicon Valley, there has been much more activity from real estate investors primarily on homes less than $500,000 in the conforming loan arena. Short sales and Bank Owned (REO's) are enticing investors to pick up these properties. These homes are actually competed after and bids over these low list prices are not uncommon.
The MLS now requires that when an offer has been submitted to the bank for a Short sale, the status must be change to Sale Pending even during the review period. Bank Owned (REO's) are more competitive. Banks will typically collect the offers and engage in a bidding process for the property. Of course the Bank Owned properties tend to have extremely low list prices.
My Buyer's are slowly coming out to pick up these good deals. Short Sales have been particularly attractive in the marketplace.
Sale Pending at Rivermark in Santa Clara!
Sold to the Buyers of Alan Wang, an amazing 3 bedroom, 2.5 bathrooms Townhome with 1,716 square feet of living space and a lot at 2,178 square feet in the highly desired Rivermark location. Offer in for $80,000 less than current market prices. Just a few steps to the park and the shopping center. Nicely situated, certainly a bargain.
Although things are grim in the marketplace, each person must make the right decisions for their families. If you are blessed enough to not be affected by the job situation and have been looking for a home, it is a great time to consider picking up a deal in the marketplace. If you are a homeowner, hold steady and if needed try to refinance any variable loans as required and plan to ride out this recession for the long run. Each person's situation will vary, please contact me if you would like a personal assessment of your real estate needs.