Where is the Quick Fix?

If anyone is looking for a quick fix, it is nowhere to be found.  I know some were a little disappointed by Barack Obama’s inauguration speech. I think many were looking for something reminiscent of FDR’s or JFK’s. That kind of oration that inspires and makes us feel like the sky is the limit. Well, that speech was given by Barack the evening he was pronounced President-Elect.  It was both uplifting and inspirational.  His inauguration speech was about the enormous tasks ahead, as presented by the economic and political quagmire we now face.

The housing market is no exception.  It will not change overnight. Although we saw a little relief a week ago in solds for higher priced properties, the majority of sales are in the lower end.  Out of 99 single family homes sold in the Oakland, Piedmont, Berkeley, Albany, Kensington, and El Cerrito markets, only 11 were over $500,000.

Multiple offers are still occurring predominantly in the under million dollar range. Buyers are excited to write an offer if the price is below market value as it was for a Montclair 2 bedr/2 ba. home listed at $699K that received 14 offers and went over asking. Nice to know that demand is healthy where value pricing is prevalent.  Homes priced at any level can create a multiple offer situation if they are aggressively listed like a Piedmont 4bedr/3 ba. home priced at $1.495mil. that garnered 3 offers.  Certainly exceptions to the trend, but these speak to the building demand.

Buyers are cruising open homes as demonstrated by the 100 people viewing an SF Lake district 3 bedr/2.5 ba priced at $2.295mil.  and a SF Sunset dist. 2bedr/1ba. listed at $610k that welcomed 70 visitors. 

Why aren’t they buying in bigger numbers? In a recent new builder survey, it denoted at a number of factors. First, individuals that are looking to both sell their home and buy another, are having a difficult time selling their current home to unlock their equity.  However, the most significant inhibiting factors concerned job security (88%) and that buyers are still feeling that prices may fall further (75%).

Until those issues can be remedied, the market as a whole will continue to be sluggish. The first 100 days of the Obama Administration will hopefully begin jumpstart our anemic economy. Until then, only those homes that are priced aggressively and show at their best, will be in the winner’s circle.  It is still a buyer’s market and the buyers that are willing to make the leap will reap the future rewards.