Tuesday, January 31, 2012
by Craig Whitlock
Having attended my fourth office meeting for the month, I'm noting some consistency in reports from my associates that suggest the market pulse is exceptionally strong for so early in the year - certainly greater than this time last year. Here's what I'm hearing . . . .
Open House Activity - heavy traffic in most areas in both SFR and Condo opens. Agents are reporting traffic counts from 60 to 100+ groups on many Sundays for SFR homes. Condos are running from 20 to 50 groups.
Multiple Offers - for any property that's close to being reasonably priced, multiple offers are often encountered. I've heard of at least 5 transactions that began with anywhere from 8 to 12 offers on the same home.
Increased Title Orders - my Equity Title rep for the last few weeks has noted a marked increase over the same period last year of new open orders for title insurance. This is a lead indicator of escrow activity and this person works with many brokerages on the Westside.
Lack of Inventory - In addition to my own observations, many agents have commented about the lack of available inventory in such areas as Brentwood, Santa Monica 90403, Pacific Palisades and the Wilshire Corridor. This should not be interpreted as there are no opportunities but moreover, there's less inventory than there was at this time last year.
What's this all mean? There's a collective sense that:
1.) Pent-up demand is swelling.
2.) Inventory is diminished.
3.) Buyers are realizing that home prices are (and actually have been) at the bottom and that fact in combination with amazingly low interest rates are prompting them to take action now.
4.) Competition at the negotiating table may well be substantial - especially as we move deeper into the year.
In summary, if you've been staying on the sidelines because you believe prices may drop or that waiting for Spring or Summer may be more convenient, I suggest you give consideration to the fact based on the above that sooner may be better than later to find the home that's right for you.