In the past couple of weeks I have been writing offers on properties only to find out there were multiple offers. For example, a property in Petaluma in the $340,000 price range had 15 offers. Then I had my two new listings which were condominiums, one in Rohnert Park at 6449 Meadow Pines and the second in Novato at 104 Scotia Lane. They both received 5 offers in the first 5 days. I also have been speaking with my colleagues and am getting the same info from them. I have to say, it is a seller’s market if the property is a great location and priced right. You are almost guaranteed to have multiple offers.

What I have been hearing from some agents who deal with bank owned properties is that the lenders are holding back some of the foreclosed properties. According to reports on CNBC, the foreclosure rates are growing every month but the amount of bank owned properties coming on the market are not growing at the same rate.

The lenders who own these properties are releasing them to market at a slower rate than before to insure that they do not flood the market and cause prices to drop. This has caused inventories to drop in certain areas. With a low inventory and buyers wanting to take advantage of low interest rates, this is causing multiple offer situations on certain properties. (As I always say, location always gets the best offers.) Also, the tax credit of $8,000 for first time home buyers has added even more potential buyers for properties under $600,000.

In my opinion, if you are thinking of selling, take advantage of this market at this moment in time. After November 30 2009, when the tax credit expires, the first time home buyers that needed this to buy will leave the market. And maybe there will be increasing interest rates for all the money the government pumped into the market. We really don’t know what the future holds.

If you have any questions about the market or if you are thinking of selling or buying a home please call 415-328-2637 or email pschardt@fhallen.com.

Posted by:Peter Schardt