Sudden surge in inventory?


#162

Inventory seems still high. According to the discussion it should have gone down in June. What are you guys seeing.

We have been asked to give a counter offer for 30% higher price. The house is now in market for more than 2 weeks. Why do even ask a guy that is coming 30% lower to counter.


#163

Which local area?


#164

Foster City.


#165

In Foster City #of closed sales in Jun 2018 vs June 2017 so far is down @17%.

So, you might be right, possible total June 2018 sales could be higher than 2017(assuming Trulia data is updated for June 2018).


#166

I am not very scientific and just trying to ascertain. Will look at the data dumps at the end of this month.


#167

Did you bid at asking or above or under?


#168

Inventory is still very low compared to what’s considered a “balanced” market. 2 weeks is still super fast.


#169

15% overbid.


#170

So they priced at 77% of the desired price. This low pricing strategy may not work in slowing market. It could have worked a few months ago.


#171

What do you think is high? South Lake Tahoe has 250 houses for sale and inventory is low . What does Foster City have 10-20? Same size cities and up here we have 10 times the inventory and it is still a sellers market . Rethink your parameters


#172

Assuming balanced housing market is 6 months inventory, when was the last time it was a balanced market in the bay area?


#173

Balanced inventory means 6 months average selling time DOM…The Bay Area has never had a balanced inventory. Population is always growing and supply never keeps up with demand. Price drops in 2006-2012 were due to lax financing when many buyers were never qualified and could never make their payments. Once they were flushed out of the system, primarily by investors, the prices raced back to normal trends.

Foster City has 11 houses and 15 condos for sale DOM of less than one month with a population of 34k…South lake Tahoe with less population has 250 houses for sale. And an average DOM of 3-4 months.still a sellers market…500 inventory back in 2010…


#174

Thanks @Elt1. You confirmed my suspicion that there’s never been a balanced market in the bay area.


#175

Same thing with Fremont. Less than a month of inventory. One thing I observed is that there a lot of unattractive homes even in that low number. For example, Asians don’t like to buy homes at T-junction. Same with homes right next to high voltage lines. Homes that don’t have such issues are still getting overbid with multiple offers. So if you just consider ‘normal’ homes the inventory is even lower.


#176

Now is the time to sells the dogs in your portfolio…A card board box on the median on El Camino in PA has got to be worth $50k


#177

Sold $100K BELOW list price.


#178

Thanks!. We may have visited this one.

In Santa Clara we have few houses that are sitting in market for 20+ days and sellers are getting really motivated.


#179

This house did require 10% deposit… so that might have resulted in less offers.

Good luck!


#180

In Tahoe, sellers don’t get motivated for 6months. A price drop after 4 weeks might be a mistake


#181

What is the average list price for SFR in Tahoe area. That may be the reason.