This Year Is Anything But Normal
All bets are off for seasonal predictability in San Carlos. Normally, the Fourth of July signals a summer slowdown. The market usually picks up again after Labor Day. In a year where the market shifted so dramatically back toward sellers, expect the unexpected. A perfect storm was brewing toward the end of 2011 and it hit with force in 2012:
(1) Inventory. Inventory levels throughout spring were near records lows. The inventory levels remain extremely low.
(2) A Major Back-up. Four years worth of buyers who are now suddenly flooding the market at the same time, after trying to time the bottom of market perfectly.
(3) Cost of Money. Historically low interest rates have lit a fire under even the most conservative buyers.
(4) Economic Forces. The economy appears headed in the right direction and there is a mini-hiring boom in our area. Many are leaving more established technology companies for start-ups, once again. The move of some to start-ups from more secure jobs with a larger, more established companies is almost always a sign of the confidence that many have in our local economy.
(5) Surprise. There probably is no better word for this category. Most people would be surprised at the amount of money floating around in San Carlos right now. The amount of people who can easily buy a $2,000,000 house or more, is startling. The amount of buyers who can pay all cash for their house is equally surprising.
What Does It All Mean
Simply put, expect to roll right through summer with some of craziness we have seen this spring. The number of qualified and serious buyers looking in San Carlos right now far outweigh the amount of homes available. Summer is normally a time when vacations temporarily preempt house hunting. That may not be entirely true this summer. Some of my buyers have made it very clear that if something of interest comes on the market while they are away, they will happily come back home early to take a look.
Other Notes As We Head Into Summer
* On Friday, I have a new listing coming up on one of the most desirable blocks in San Carlos. If you have interest in the 900 Block of Rosewood, please contact me or have your realtor contact me if you would like some information ahead of time.
* If you are financing a home this summer, be prepared for possible appraisal issues. Not to completely belabor the appraisal issue on this site, but they are a major headache when they miss and they are missing far too frequently in San Carlos right now. Work closely with your realtor and mortgage broker to catch any possible pitfalls before you are in contract on your new home.
* A new trend that is developing in San Carlos right now centers on families who no longer need a bigger home, trading down. The thought process is that many have kids going away to college and they no longer need a larger home. They are willing to trade down to either eliminate or greatly reduce their mortgage and possibly free up some cash to help pay for college. If a match exists, this type of trade can work very efficiently for both parties. More to come on this in a later post.