As mentioned in previous posts on the San Carlos Blog, the 1.2 -1.7 million dollar market in San Carlos seems to be the buyers’ version of the Bermuda Triangle for homes…..leaving buyers dazed and confused. One of the most common concerns I get from sellers in San Carlos who are selling in the red-hot $900,000 – $1,200,000 market is, “I’m glad I did well on my sale, but what in the heck are my supposed to move in to?” Recently, this has been a very fair question. Consider the fact that the current inventory of homes in this price range have been on the market for an average of 191 days. Compare that figure against the average days on the market for all properties in San Carlos for the last six months which has been 30 days, and you begin to understand the frustration. The 1.2 – 1.7 market has suffered from a severe lack of inventory as well as some homes which are clearly are not selling due to price, location etc.
For the first time, in a long time, help is on the way. In the next few weeks you will see homes come on to the market in this price range, giving some relief to those looking to move out of the $900,000 – $1,200,000 range. There are some that will push the 1.6 mark which will most likely gain multiple offers. Two in particular that I know of will attract tons of attention. Given the amount of pent up demand in this price range, you should expect some serious competition for those homes that are able separate themselves from the rest of the pack.
For those interested in making a move into the 1.2 – 1.7 market, you will need to have all of your ducks in a row if you want to make a run at some of the best options that we have seen in a long time.
2 Comments
Bob,
Outstanding site. This is by far the most detailed real estate website that I have come across.
I have been reading on your blog for the last few weeks about the low inventory, fast moving properties, etc. I believe that if we were to put our house on the market we could get a very good price for it. I am just estimating that we are in the 950K range. I am concerned, however, that trying to buy our next home at about $1,250,000 range, we may be slightly overpaying if we were to turn around and bid on homes in the same, low inventory, market. What are your thoughts on this?
David
San Carlos
Hi David,
Thanks for your question and I appreciate the kind words about the blog. I try very hard to provide detailed information that goes well beyond the information that is generally available to the public.
I understand your concern, it is actually quite common. Here’s the thing, you can’t sell in a seller’s market and expect to suddenly buy under optimal conditions soon after. Unless you can negotiate an extended rent-back in the sale of your home or you have a home to rent for a substantial length of time, you most likely will not be able to do both concurrently.
The question then becomes, would the final sales price on your home justify you having to spend a little more in a market with low inventory on the purchase of your new home. Most of the time the sale and purchase in a seller’s market can be justified. If you were to sell you home in a sellers’ market and then rent while you are waiting for the market to turn back to a buyer’s market, you will most likely be losing a tax write off for an extended period of time. In other words, the carrying costs of waiting on the market may very well be outweighed by the benefit (tax write off) gained with a more timely purchase. Additionally, you are banking on the fact that the market will slow down within the next 18 months, not to mention a fairly large disruption in your life. Unless you are worried about having to sell your next home within three years, I would not be too concerned about a tight market. These are concerns that are best discussed with your realtor who will have a much better understanding of your goals and personal situation.
Bob Bredel
Realtor
REMAX Today