What notable changes have occurred in the past 3 months that impact buyers/investors?

Broker Opinion Update:
In the month of April, a noticeable change has impacted the real estate market in the SFV, particularly with buyers/investors.

Buyers, more than ever, are looking and expecting "move-in" ready properties or light fixers, but are experiencing difficulty in getting offers accepted due to overbidding with other buyers.

Investors, on the other hand, who were used to making offers approx. 10-15% lower than the asking price on distressed properties, are also finding themselves in an extremely competitive market with other investors who are looking to make modest returns on their investment, rather than fairly large profits.

The change in buyers view on "move-in" ready homes are giving investors a sense of urgency of getting these distressed properties immediately, so they can turn around and rehab the property as soon as possible to ensure a faster sale.

Overbidding has caught many buyers/investors off guard, but this only gives 1 implication: a shift in strategy in making offers is becoming incredibly necessary.



  • May 08 2012 - Woodland Hills
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Answers (4)

Profile picture for josep711
You go Val!!

Steady State- I just have to say 1 thing, she just sold my house a week ago and when we first put it up for sale, we received 2 offers at asking price and 4 over.

  • May 10 2012
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@SteadyState
Thank you for your thoughts & opinion.

First, I would like to emphasize that this opinion is specifically geared to the San Fernando Valley real estate market. Second, I am not sure what line of business you work in, but many sources & other real estate professionals in the same territory I work in are seeing a similar change as well.

Many economists, real estate professionals, and business professionals would agree that signs of a better and more stabilized economy, does not solely depend on how well the DOW is doing or how many student loans are acquired by individuals,but rather on employment, home values, nation's gross domestic product (GDP), and various other factors.

My goal here and in every aspect of my business, is to provide the general public in the communities I work in with accurate and up to date information of what I come across on a daily, weekly,, and monthly basis.

Lastly, I would have to disagree with your conclusion as to why the real estate market crashed in 2008. What ultimately lead the crash of the market was lenders providing bad loans to individuals who were not qualified and on a stated-income basis, among other variables.

If you wish to read more information regarding my conclusion & analysis, I would highly suggest reading the following articles:

Mortgage Giant Offers Another Sign of Stabilizing Market
http://realtormag.realtor.org/daily-news/2012/05/10/mortgage-giant-offers-another-sign-stabilizing-market?om_rid=AAEyLG&om_mid=_BPrAyvB8i7CyqZ


Best regards,
Valerie Valenzuela
Broker/Owner
Golden Stars Realty
  • May 10 2012
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Profile picture for SteadyState
Speaking gibberish with oneself is a sure sign of insanity.
And if I may so say untimely when the DOW is down ~5% over the last 5 days and student loans exceed $1T. You go girl - paint another unrealistic picture of rapid home demand, multiple offers, and outbidding as a "strategy" so we can bail out the banks and homeowners again like we did in 2008.
  • May 09 2012
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Why is this information important for you to know? It is a clear sign that our economy is stabilizing and that home values are headed in an upward direction.

To homeowners still experiencing some difficulty affording their mortgage, this spring/summer would be a very good time to short sale a property (if all other options have been exhausted), due to the fact that lenders would be experiencing a slightly smaller loss.

Based on my experience & analysis, I foresee low-interest rates to continue throughout the year & home values increase at a moderate rate. If I had to predict when the market would recover 100%, I would say by the end of this year. 2013 will most likely be a seller's market & buyers looking to buy would experience slightly higher prices & interest rates as well.

Please take this update as a form of opinion & not as fact. [Contact information removed by Zillow Moderator]  I wish you a great day & I hope that this information is insightful!

[Link to personal website removed by Zillow Moderator]

Broker/Owner
Golden Stars Realty



  • May 08 2012
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