We’re still seeing a lot of multiple-offer situations, and there are several reasons for that. As a result of the lack of liquidity in the mortgage market, interest rates soared up to the mid-fours in March, and now they’re back down into the mid-threes. Currently, many buyers have more certainty regarding their employment than they did in March, which means there are more of them entering the market pool.
I like to use March 27 as the barrier, since the lockdown really came into effect at the end of March. Since then, in just the 91325 ZIP code alone, 64 properties have come onto the market for sale, and 34 of them are listed at over $900,000. We’ve also had 32 pending sales and 41 closed sales, 11 of which were for over $900,000.
I mention the $900,000 price point because in that price point, as a result of there not being as much jumbo financing available and fewer stated income and bank statement loans available, many borrowers are now scrambling to find different loan products.
“It’s common to see between four and seven offers on a correctly priced property.”
Also, bear in mind that many lenders, especially big banks, require higher credit scores—often 700 or above. One of our trusted lenders was recently able to take over a loan from a different lender and get it closed, which is why you need to work with a good lender.
As I said, we have been seeing multiple offers, especially on properties under the $900,000 price point, as a result of the low interest rates. It’s common to see between four and seven offers on a correctly priced property.
Pricing is key because the buyer needs to be able to see the property’s value. Homes that have been completely remodeled are still fetching top dollar, but houses that need a lot of work and are pretty dated need to have that reflected in their price.
Despite the fact that we’ve seen a 25% drop in the number of sales, there have still been many sales taking place. Remember that many sellers haven’t put their homes on the market because they’re waiting to see what happens with the pandemic. It’s normal in the spring selling season for us to see increases in inventory, but the number of available homes is still quite low.
If you have any questions about the real estate market, don’t hesitate to reach out to me. I’d love to help you.
