Say Good Bye To The Buyers’ Market Throughout Most of the United States

by Admin on July 19, 2013

A few media outlets have reported that the buyers’ market in the United States is over. Funny thing is that most of the warm weather coastal destinations my team sells in, this has been old news. It hasn’t been a buyers’ market for at least a year in these locations. This is especially true at the lower price points of $300k or lower. An interesting stat by “Homes.com Rebound Report” stated that 14 out of the top 100 markets in the U.S. have fully recovered from the 2007 recession.
Because of this, inventory has significantly shrunk all over the U.S. This is causing the market to shift to a sellers’ market. Many thought after the recession that we would never see multiple offer bidding wars like we saw in the mid 2000’s. In a lot of places, these competitive, multiple offer scenarios are very prevalent. Some think this is happening because the banks are relaxing their credit standards and lending to low qualified buyers again like before the recession. The direct opposite is true. These are well qualified buyers with stable jobs and good credit competing for properties. Small to large investors are in the market buying up multiple properties as well. With this, there is a lot of cash in the market. In Southern California, over one third of the market is all cash buyers. In places like South Florida, it is well over 65% to 75% all cash buyers.
Since this is a strong sellers’ market in warm weather coastal destinations throughout the U.S., strategies have changed because buyers don’t have the leverage in negotiations anymore. In my next blog post, I’ll give my readers strategies on how to separate your offer as a buyer from the competition. The next blog post can be read at my local La Jolla, San Diego blog at www.jrobhandley.com/lajollarealestateblog .

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