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Silver Trusted Contributor
Michelle1x
Posts: 1,063
Registered: ‎02-17-2008
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Platinum Super Contributor
buyinghouse
Posts: 5,878
Registered: ‎04-23-2011
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Re: Inventory crisis

  I hope nooblnSF can read what they say in that report. I quote:

 

 "We’ve already seen how this has affected the Bay Area, from hundreds of hopeful buyers lining up for a lotto to buy a new
construction model home
to prospective buyers creating designer love letters to sellers,
telling their life story and how much t...
."

Silver Super Contributor
Marcus76
Posts: 1,121
Registered: ‎08-04-2010

It's not a crisis if you bought when everyon else was sca...

It's not a crisis if you bought when everyon else was scared to buy.  You just smile as prices go up.

Silver Contributor
kinectimal
Posts: 442
Registered: ‎12-18-2011
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Re: It's not a crisis if you bought when everyon else was sca...

"3. Everyone wants to buy at the bottom, but few want to sell when they feel their home will be worth more next year."

 

This is exactly what's going on right now.  We're still at the bottom but more people are waking up to this.

 

Also if people expect homes to be worth more next year they're willing to pay more today.

Platinum Regular Contributor
elt1
Posts: 4,707
Registered: ‎01-04-2010

Re: It's not a crisis if you bought when everyon else was sca...

There has been an inventory crisis since the Gold Rush...Funny that the papers think this is news. nationally 5months worth of inventory is normal ...Even in 2009 the RBA had at most 2 months worth of inventory.... We have never had enough inventory. That is why things are different here...in these"crisis times" you would think cities would allow more building, but they won't.

Platinum Regular Contributor
elt1
Posts: 4,707
Registered: ‎01-04-2010
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Re: It's not a crisis if you bought when everyon else was sca...

I can't believe buyinghouse missed this shack in Woodside..just sold for a mere $117m....http://blog.sfgate.com/ontheblock/2013/01/25/woodside-estate-becomes-2nd-most-expensive-property-eve...

Silver Contributor
DealHunter0
Posts: 391
Registered: ‎04-05-2011
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Re: It's not a crisis if you bought when everyon else was sca...

[ Edited ]

sakidd12 wrote:

 

This is exactly what's going on right now.  We're still at the bottom but more people are waking up to this.

 

 


The bottom is long gone.  Maybe things will get more reasonable again if rates rise, maybe not.  The two mountain view condos I bought in 2011 are up 40%!!  Every property I submit an offer on now is competing with 10–30 others.  In 2011 it was 2–4.

Silver Regular Contributor
sfsfr
Posts: 682
Registered: ‎04-15-2012
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Re: Inventory crisis

Redfin had a recent blog post about this. The causes are the usual suspects like homeowners waiting for prices to go up and homeowners having nothing else to buy. But another significant factor is that homeowners are choosing to rent out their property instead of selling it, which currently makes financial sense with rents being so high.

 

Redfin Blog post

Regular Contributor
ckaught78
Posts: 59
Registered: ‎10-03-2012
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Re: Inventory crisis

People renting out their houses was indicated in the original post:

 

4. Investors – from mom and pop and corporate investors have come out and become landlords, taking property that normally would be on the market into the rental realm.

Silver Trusted Contributor
Michelle1x
Posts: 1,063
Registered: ‎02-17-2008
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Re: It's not a crisis if you bought when everyon else was sca...


elt1 wrote:

We have never had enough inventory. That is why things are different here...in these"crisis times" you would think cities would allow more building, but they won't.



I know we've never had enough inventory but what that blog post shows is that we are down 50% from even last year, when the market first started to take off.  Had it been down 50% from jan 2009, that would have been one thing but it is down 50% from last year and most of my houses went up 100K last year minimum.