I’ve seen a few big list price capitulations in somewhat slow to stagnant areas, that subsequently went into escrow fast.Don’t know how heavy the bidding was. My instincts and educated guess is that it wasn’t particularly heavy in most cases.
A client also got a really good counter from a low-ball on a REO.The response was quick. These are a mix of turnkey and fixer properties , non-distressed, short sale, and REO. They are around and up to a few hundred grand above the median.I-8 corridor and East County.I guess you are seeing this happen in stronger sub- markets too?I Don’t know if there is any correlation to the bailout, but lower rates, if they have been a consequence,can not hurt.
You are probably seeing buyer’s who, for example, placed an offer for 500k 3 to 4 weeks ago with a 6.25% rate and got countered at around 520k more or less, with a rate under 6% available today? Many if not most buyers are going to see that as an equivalent opportunity and go to escrow when they would not have previously, especially if rates had gone up in the interim.
The mortgage broker who I talk most with says nothing but the rates have changed (as of last week). He warned that getting PMI on for lower down buyers could possibly be a problem going forward. Have you seen that?SDR?
I did get an add in my e-mail for stated loans. You probably got it too? I didn’t look into it. All stated probably has really high LTV’s and is not causing any increased activity.
I am not interpreting a bottom here or even a trend change. Even after good negotiating, properties in the price range and areas that I mostly focus on have more drops ahead for the most part.
Anyway, recalling that we have talked about a “gut felt” experience of when the market peaked, probably a blend of instinct and observation, I think we will similarly catch on to any durable end to the trend of price declines(keeping in mind sub-market variation, armageddon etc.).
