According to the MLS listing data’s, listings seem to be in a shortage. It’s a seller’s market since there are low inventory and there are more buyers than there are homes for sales, which is a promising signs of a housing recovery. It looks like the housing supply in the bay area is at a shortage. How is this possible? Yes, banks have an inventory of homes on hand but it is not yet released until possibly the end of the year. These properties are not yet release but when they do, it will probably be sold to investors in bulk. So unless you have millions of dollars in cash, it will do us no good. This is good for the institutional investors but pretty much out of reach for individual buyers.

In addition, most people are not selling their home or relocation. But instead are working with banks for possible home modification resulting in fewer inventories for sale on the market. Most of the agents I spoke to at the office with listings in the San Jose, Milpitas, and the bay area are getting a ton of offers on their properties; anywhere from 10 to 35 offers. This is extremely high.

Currently, foreclosures make up for about 29% of the market. Although this is still high, it is an improvement from last month. If or when this drops to around 10% thing will be back to normal.  The good news is that the mortgage rates are still at record low rates. According to Freddie Mac, the 30 years mortgage is currently at 3.90% and 15 years mortgage at 3.13%. Unemployment also dropped from 8.3% to 8.2% from February to March of 2012. This may not seem much but it’s actually an increase of more than 25,500 jobs added.

Due to the low supply of inventory on the market, perhaps this would be a great time to sell if you are looking to relocate or possibly to upgrade.

By Brian Nguyen
Coldwell Banker
(408) 634-6969

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