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With the 30yr fixed below 5% and a shortage of sub $300k starter homes, it could be a sellers market in some regions this summer when demand is at it's highest.
In some areas, supplies are even bidding-war tight. In Denver, for example, supply has fallen to 5.7 months from 6.2. In Phoenix it has declined to 4.5 from 5.2; and in San Francisco inventory has halved, to 3.2 months from 6.5 last March.
In California, almost all cities have a short supply of single-family homes. That's especially true in the lower-priced categories, according to Leslie Appleton-Young, chief economist for the California Association of Realtors.
The supply of homes that sell for less than $300,000 is at 3.2 months statewide, down from an already low 3.3 month supply 12 months ago.
Look it is not a "game" -- there is tight supply. That supply is caused by a relatively predictable set of factors -- people can afford to buy a pretty decent place to live for not much more, perhaps even less, than landlords are willing to rent the same place for. Once they buy that place there is a tendency for them to fix it up. When they then go to sell that starter home they want more money for it than they put in. That works so look as someone else has seen their income go up enough to afford the higher price and/or rates have declined to make the place as affordable.
So long as people do not OVERSPEND or get stupid with an artificially low ARM the wheels ought to keep spinning pretty much indefinitely... (gotta love the immigration policies too...)
In your area supply may be tight, but in mine there's a glut of houses for less than $300,000, also no lack at less than $200,000. The nicer houses in the various levels from super-cheap to higher-middle-income move faster but there's absolutely no reason to enter bidding wars. There are other fish in the sea.
In your area supply may be tight, but in mine there's a glut of houses for less than $300,000, also no lack at less than $200,000. The nicer houses in the various levels from super-cheap to higher-middle-income move faster but there's absolutely no reason to enter bidding wars. There are other fish in the sea.
This is more how it is in my neck of the woods. I see many houses in all ranges that are still sitting on the market many months after coming on. I see the price drops on a daily basis as well.
Every day I am more and more convinced I made the right choice by buying at the much lower end of my budget as I see the price drops and houses stagnating on the market.
In your area supply may be tight, but in mine there's a glut of houses for less than $300,000, also no lack at less than $200,000. The nicer houses in the various levels from super-cheap to higher-middle-income move faster but there's absolutely no reason to enter bidding wars. There are other fish in the sea.
Here too. Lots and lots and lots of houses for under $300K and lots and lots and lots under $200K.
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