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I was planning to post on strategic interior home improvements this week – but I have to pause on that topic and share what’s going on in the Claycord real estate market: It’s on FIRE!
What do I mean when I say that? Here are some examples of what our last couple of weeks have looked like around Claycord and the East Bay.
Buyers are out in droves! Many open houses are experiencing 30 or 40 buyer couples coming through for the past couple of weekends. This is high for our area in February. Buyers are out doing research, checking out neighborhoods, evaluating homes, and learning what they can buy in their price range in today’s market.
Bidding wars are happening – in many, many cases homeowners are enjoying multiple offers when their homes are updated and priced right. The offers that are being submitted are usually well written, well financed, and generally above the asking price. Multiple offers over asking …
Mortgage interest rates have crept up a little – from 3.5% for a 30-year fixed loan to 3.625% this week – but this is still a fantastic rate. Refinancing applications are pouring in to the lenders I know as an increasing number of homeowners have built up their equity and can finally cash in on these great interest rates.
And – there are not enough homes for sale! The market is smokin’ hot partly because inventory is very low. Currently there are only 16 detached homes for sale in Clayton, 65 in Concord, 32 in Walnut Creek and 19 in Pleasant Hill. This is in any price range, location or condition. Conversely, we had 100 more homes for sale in Concord in November. This is a serious shortage of property for buyers to choose from right now. All those prospective buyers doing their research and checking out homes are feeling frustrated and if they’re ready to bid, they’re often writing aggressive offers.
If you’re planning to sell this spring, it may make sense to hustle and take advantage of what’s happening right now … sellers who get their home prepared and on the market fast may reap pretty nice rewards …
What’s driving these dynamics?
We’ve seen that the first quarter of each of the past two years have experienced a “crazy busy” market – with multiple offers, quick sales and buyers ready to get into a new home early in the year. This year feels about the same right now – if anything, the demand feels higher than last year.
Many buyers are looking to take advantage of the very low mortgage rates. Other buyers have been saving up, preparing and cleaning up their past credit items (short sales/foreclosures) in anticipation of getting into a home again with a fixed rate and an affordable payment this time. And of course some buyers don’t want to spend their summer in my car looking at homes … I don’t take that personally!
We’re seeing home sellers in every demographic right now – some are downsizing, some are staying local and looking for a bigger place or different schools, some are relocating to a different part of the country for warmer weather or to be closer to grandkids. Just about everyone needs some work done to prepare their home for sale – whether it’s cost effective renovations and updates, maintenance issues, code compliance issues, or just purging clutter, painting, landscaping and staging. Sellers, take note – putting your house on the market and preparing it effectively so that it generates those multiple offers … will take some time.
My advice – if you’re thinking of buying or selling a home in the next two weeks, two months or even two years, start interviewing local agents to find the best match for you right now. Look for a Realtor who is honest and really experienced and can guide you through this market. Don’t wait – start the process, evaluate real estate agents and get advice about what needs to be done to start preparing your home for the market. Sellers should consider what updates, timing and selling strategy they’ll need to plan for to ensure that their home sale and move are as smooth as possible.
If you’re looking to buy, my advice is the same: get started now. Get in front of a lender or mortgage broker to understand your credit and buying power. It’s my sense that this is going to be a good year for real estate – get prepared! If you’re ready to buy, choose a fixed rate mortgage that is affordable for your family, even if a time comes when one of you is not working.
Now, I understand that I will get beat up on this blog post – and as always I am sharing my experience from my perspective through my feet on the street or fingers on the market, however I wanted to start a discussion – I’d like to hear your thoughts about the market this year. It’s interesting to hear other people’s opinions and experiences!
So, if you’re out buying or selling a home right now – what has it been like for you??
Nancy Bennett, REALTOR, Keller Williams East Bay CalBRE# 01399870
Nancy Bennett has over 20 years of sales and marketing experience, with 10 of those years selling real estate in the East Bay. She’s the #1 Realtor in Concord and in the top 1% of Realtors in Contra Costa County – she also leads The Bennett Team out of Keller Williams in Walnut Creek. Nancy has won the Five-Star Professional Award for Customer Service in 2012 and 2013.
Nancy is also a member of the National Association of Realtors, the California Association of Realtors, the Contra Costa Association of Realtors, the Fortune 400 Masterminds, and Contra Costa Realtors in Motion. She has served on the Agent Leadership Council at Keller Williams, as well as being a faculty member and mentor to new agents at her office.
Nancy is a licensed foster parent and a volunteer with local organizations such as Meals on Wheels and Youth Homes in Walnut Creek. For more information, please visit www.BennettBetter.com or reach Nancy directly at: Nancy@BennettBetter.com.