We are just about finished with the first quarter of 2011, and it is a good time to reflect on what the market has done so far this year. There is no doubt that we are seeing a lot of activity from buyers, which is a good sign for the local market. The challenge for sellers and property values in general is that buyers are being very particular about what they want to buy and how much they are willing pay. If a property is in a good area, priced well, and staged nicely, there is a good chance to see multiple offers. At the same time if anyone of the three prime factors (Location, Price and Condition) are not attractive to buyers, the property may sit without offers or may receive “low ball” offers. If two of the three factors are strong , then the property will get showings and may get offers. Of course, as in any market, if the price is low enough, there will be buyers who will overlook location and condition.
Right now the market data shows a current trend in declining values. It is hard to say if this is seasonal or if we are really going to see prices go down some. Many say we have hit the bottom, but few are now predicting prices to increase this year.
Today’s Sentinel has an article regarding the drop in median price.
Median home price $450,000 in February – By Jondi Gumz
SANTA CRUZ — Is this the double dip predicted by some housing analysts last year? Or is it a seasonal dip that happens in January and February every year? View Full Story