The traditional Black Friday deals are apparently not limited to just retailers. A combination of savvy investors and buyers who have been waiting on the sidelines have jumped into the San Carlos real estate market. As Warren Buffett once said, “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” He’s right. The lower-end, 850K and under, and the higher-end 1.5M and higher, are ripe with possibilities for buyers who are viewing this as a solid opportunity to buy.
The lower-end homes in San Carlos have lost a certain portion of their buyer pool because of tightening loan standards. Additionally, with a leveling of the San Carlos market those buyers who were once looking at an entry-level 2/1, can now possibly consider a 3/2 that will need some work. The softening of the lower market has allowed for investors to come in and pick up some of the 2/1s or eastside properties at reduced prices. Some investors are finding the stock market far too volatile and are seeking refuge in real estate. With the San Carlos market leveling and investors’ ability to entice the seller with secure financing, investors are able to take further advantage of market pricing.
Another reason that buyers are finding deals in San Carlos is that most sellers seem to have come to the realization that it is no longer 2005. As of about six weeks ago, I noticed a change in the way many San Carlos sellers were approaching the sale of their home. Many who were stuck on their list price are now excited for an offer and willing to work with buyers on terms and price.
Another motivating factor for San Carlos sellers is “uncertainty.” Comparatively, our market has fared incredibly well compared to most others. However, whether we will continue to see a leveling of the market, and for how long, are questions that are further encouraging sellers to carefully consider all offers.
Finally, buyers may find further incentives for homes that have been on the market for some time and are now facing the holiday season, which is traditionally a much slower season for real estate. Less competition among buyers means that sellers will need to grant additional incentives.
In one week, we will publish the 2008 San Carlos Year in Review. In two weeks, the 2009 San Carlos Market Preview will be made available. Please check back for both of these posts.