Stages Of A Market Cycle

I recently ran across this information while researching data for a home buyer seminar that I put on last month. It lays out the stages of a real estate market cycle. You can see on the slide when the minimum and maximum risk opportunity's are and when it is a good time and bad time to buy in the market. I would say that we are closer to the mimimum risk end of the spectrum. Meaning....now is a good time to buy. This is especially true for entry level buyers. (See my previous blog entry for why.)

I see a huge opportunity for home owners who have equity to move up in this market as well. Don't hesitate. I have noticed that real estate in California tends to move in a pack like mentality. Be the first and get the deal. When the pack moves, prices go up and the deals are harder to find.

Multiple Offers Are Back

There is a lot of talk in the media still about how bad the housing market is right now. I know that bad news sells newspapers, but enough is enough. I am a full time Realtor working in Santa Clara County and I can testify to you all that the market is picked up momentum. I have clients that are looking for the American dream right now. They are shopping for a 3 bedrooom/2 bath home in San Jose at a price range from $350,000 and down. Now, in the past, you might have said no way. But not in todays market. These types of properties are out there and ready for the taking. However, like anything else in life, timing is everything. My clients and I are seeing at first hand the return of the real estate market in Santa Clara county.

Most of the homes that we see at this price range are now pending sale. Meaning, the bank or the seller has already accepted an offer for the property. There are two, three and sometimes ten offers on bank owned properties in this price range. The competition for homes like the one my client is looking for has skyrocketed. Multiple offers are back.

So I would say that real estate is alive and well in Santa Clara County. Homes are selling and you can look to the MLS for proof. For those of you who have equity and are looking to move up. Now is the time to do it. Take advantage of low interest rates, lower purchase prices, and lower property taxes. Dont miss the boat. Opportunity is knocking at your door.