Where Is My Dream Property?

If you have been in the market or started searching for property, you probably haven't seen much to choose from or if you saw something you like it has been sold already.  I often times have to give the bad news to my clients over and over again but I tell them not to give up of course.  I encourage them to keep making offers until one is accepted.  It really comes down to making a strong offer and the more offers you make the more you realize what you need to do to get an offer accepted.  Usually it comes down to offering a higher price.  

One reason for this competitiveness is the LACK OF INVENTORY!  Inventory meaning property since we are talking real estate here.  Besides the fact that investors are snatching up homes and turning it around for profit, lack of inventory is the main reason for the rising prices.  There isn't even enough inventory for investors to keep flipping which makes their profit margins shrink.  SO WHY THE LACK OF INVENTORY?

One simple answer is that sellers do not want to sell.  Why don't they want to sell?  Because they don't feel like it's a good time to sell.  Why don't they feel like it's a good time to sell?  If you remember not too long ago, home prices sky rocketed and many homeowners bought during that time, however, home prices have gone down so now many homeowners do not have much equity in their property.  Therefore, if they sell, they would be left with nothing!

Until home prices go up further where it makes sense for the homeowners that bought at high prices to sell, we will continue to see a lack of inventory and rising prices.  Good for sellers, bad for buyers.

If you have any questions, feel free to contact James Y. Kuang at (626) 371-5662 or by email - james.kuang@coldwellbanker.com

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