What do the pending properties on Oakview, Rosewood, Palm, Hill, Lyndhurst, Park, Tamarack, Wildwood and Northam all have in common? They all went pending with multiple offers. Many of those went pending with three or more offers and one with double digit offers. Their status accurately reflects what is shaping up to be a much hotter than expected spring market.
We have known for some time that there was a growing bubble of buyers who were locked in on San Carlos. On the sidelines for much of 2009, and frustrated by the lack of inventory of 2010, many of these buyers are now out in force. Many of these buyers did a great job of timing the bottom of the San Carlos market with historically low interest rates. There was only one small problem……their timing has coincided with extremely low inventory. These same buyers are now involved in an escalated search for a suitable San Carlos home. Many are now feeling the pressure of what should be rising interest rates toward the end of summer.
Fueling the demand is a sudden influx of new loan programs that have more relaxed requirements for borrowers. Some San Carlos mortgage brokers that I work with have been able to find programs with very favorable rates on jumbo loans. Obviously, many San Carlos properties are purchased with jumbo loans.
Finally, the overall economy seems to be picking up just a bit. With the NYSE getting closer to the 11,000 mark, as compared to 6,500 last year, many are clearly feeling more comfortable about a home purchase.
Expect the spike to continue well in to summer as long as inventory remains relatively low.