When it comes to real estate, it is safe to say that today, inventory is low. The Lawhead Team has some tips to finding the right house for you even in times of low inventory.

This spring, it looks like home buyers will have to deal with the lowest inventory we have seen in years. Most homes are usually sold between March and July, making it easier for families to be settled in before the new school year starts.

The following are some strategies to finding your home even in a time of low inventory:

Pre-Approval – Before you start looking for homes, it is important to get pre-approved for as much as you can afford. When making an offer during low inventory, sellers will be impressed you qualify for more than the list price even though you don’t want to go that high.

Compromising – If you are looking for a started home you’ll sell in a few years or a retirement place you’ll plan to live out your life in, don’t let the low inventory situation make you compromise on your dream. But remember, be flexible. What can you live without in your new home?

Persistence – Just because spring is here doesn’t mean you have to buy. Properties are sold year round and if you give yourself more time to shop during low inventory, you’ll increase your odds of finding what you are looking for.

Expand – Look at homes that may be a little further than you had planned. Widening your search during a time of low inventory will help you have more opportunities to find the home you’re looking for.

Open Houses – Open houses are a great opportunity to meet with other agents who have active listings in the neighborhood. Sometimes you can get a lead on a home before it is even listed – a huge benefit during a time of low inventory.

Deeper Look – Don’t judge a book by its cover. During times of low inventory, viewing a home online and making your decision that way may cause you to lose out on a potentially great buy. If the home is in your budget and in your neighborhood, look at it in person. You may be surprised.

Money – Winning a multiple offer bid takes more than just money. If there are certain little things you know the seller needs or wants, offering to help out may make your offer the winning bid. This is especially helpful during times of low inventory when every home has multiple bids on it.

Do you need help finding a home during this time of low inventory? Call The Lawhead Team!

Home prices are still down and mortgage rates are at their all-time low. It’s a great time to buy, right? Yes, but with inventory so low, it is hard to find a house suitable for your needs!

If you follow real estate at all, you already know we are in a very low inventory housing market. Fewer homes are for sale and that makes competition for the best homes on the market cut throat! Bidding wars are making a comeback but despite these challenges, it is still a great time to buy a home.

The following are some options for home shoppers during time of low inventory:

• If you are tired of losing the bidding battle, consider new construction. Building from the ground up means you can choose your own floor plan, your own home site and all the other details that go into a house. When buying a plot of land, there is no worry if another buyer is going to come in with a better offer. Plus, the inventory of empty lots for sale are a lot more plentiful than those of homes already built.
• For those homes that have stayed on the market for months, even in low inventory times, you can hire a contractor to improve. A strange layout or outdated décor can keep a home from selling in any market. But, if you love the neighborhood and location of the house on the street, consider buying the home and making the updates yourself with the help of a contractor. If the money you save buying the “unwanted home” can be used to remodel the kitchen and replace outdated items in the home, you may end up with a jewel!
• The days of low-balling your offer are over for now. If multiple offers are the norm, making your offer stand out will help you seal the deal. Find out from your real estate agent what types of things might tip the odds in your favor. Did the family already move across country? If so, putting in for a quick closing date may give you an edge over your competition during a low inventory market.

Do you have questions about buying a home during a low inventory market? Please call us!

The Lawhead Team recently came across an article from the Home Buying Institute about the low inventory of homes in the San Diego area.  As a leader in our industry, we would like to share this important article with our readers.

Buyers Struggle to Find Homes in San Diego, as Inventory Plummets

Currently, the San Diego real estate market can be summed up with a single phrase — inventory shortage. Home buyers are having a hard time finding suitable properties, especially in hot neighborhoods near the coast.

The supply-and-demand situation has completely reversed itself over the last few years.

Given all of this, it’s no wonder prices are rising. According to the San Diego Association of Realtors, the median sale price for single-family homes jumped 13% over the last year. The median for townhomes and condos rose by nearly 19% during the same 12-month period.

Inventory is Way Down in San Diego

According to Realtor.com, the number of homes for sale in San Diego County fell by nearly 35%, from October 2011 to October 2012. Some of this is the work of investors who sensed the ‘bottom’ months ago. They are now scrambling to purchase homes before prices rise any further. Investors typically pay cash, and they are willing to bid over the asking price in many cases. This makes it hard for regular home buyers to compete, especially first-time buyers who don’t have a lot of capital.

Real estate inventory has fallen for 15 months in a row, according to the San Diego Association of Realtors. The trend will likely continue into the first quarter of 2013, and possibly beyond that.

Investor demand for housing is still strong. But the level of demand among regular buyers is growing more slowly, tempered by high unemployment. But the job market is improving. San Diego’s unemployment rate fell to 8.4% in September, down from a high of 10.9% in January 2010. If demand continues to grow while inventory remains tight, we could see home prices rise even further next year.

Looking Ahead: More of the Same in 2013?

So what does the San Diego real estate market look like in 2013? Here’s a likely scenario for the first quarter, at least:

Mortgage rates are expected to remain low into the first part of 2013. This is partly the result of actions taken by the Fed. Earlier today, Freddie Mac announced that the average rate for a 30-year fixed mortgage had fallen to 3.34%, the lowest in more than 40 years. This will act as a powerful incentive for San Diego home buyers in 2013, especially if the job market continues to improve.

Demand for housing is growing across the price spectrum. Investor activity may level off as prices continue to rise and there are fewer deals to be had. But this should be offset by rising demand from live-in home buyers. Low mortgage rates and a slowly improving job market will bring more of these buyers into the market.

Inventory will probably continue to fall over the next few months, as it has since the summer of 2011. All of these factors combined will make the San Diego real estate market highly competitive in 2013.

According to RealtyTrac, foreclosure activity in San Diego fell by 26% in the third quarter, compared to the same period last year. This means there will be fewer distressed properties coming onto the market in the months ahead — always a boon for home values.

Next year, we will likely see buyers paying over the asking price for homes, in many cases. Buyers will also have to make numerous offers before getting a home, as investors bid properties right out from under them. The low-ball offer will become a thing of the past.

In fact, we are seeing some of these trends already. The North County Times recently told the story of a couple who made offers on nearly 100 homes, offering $20,000 above the asking price in some cases.

Though inventory may be low in San Diego, having The Lawhead Team on your side will help you in finding your next dream home.  Because Two Lawheads Are Better Than One^TM.

Article can be found at: http://www.homebuyinginstitute.com/news/inventory-plummets-280/

The Lawhead Team recently came across an article from the Union Tribune.  Did you know the biggest problem in real estate at the time is lack of inventory?  Check it out.

No. 1 Real Estate Issue? Inventory.

Lack of housing inventory to feed consumer demand is a growing concern in San Diego County and statewide, a chief housing economist told local Realtors on Friday. Real estate pros fear this dynamic could keep the housing market from making progress because qualified buyers are edging each other out of slimmer pickings.

Leslie Appleton-Young, with the California Association of Realtors, said competition for homes began to heat up earlier this year in light of declining foreclosure resales and increased investor activity. The result, she said, has been increases in both sales and prices statewide, though we are still far from pre-recession peaks.

“The market is in the process … of healing,” she told local real estate pros at a housing summit held by the San Diego Association of Realtors. The event’s other keynote speakers — Gary London, with The London Group Realty Advisors, and Lawrence Yun, chief economist at the National Association of Realtors, echoed similar thoughts about inventory and the fact that California is in the middle of a tepid recovery.

Appleton-Young broke down housing inventory into three key categories, all very different from each other: equity, bank-owned and short sales.

“Equity” sales, or traditional sales, now make up almost 60 percent of total statewide home sales, up from 30 percent in January 2009, Appleton-Young’s numbers show. The share of bank-owned properties in the market have fallen from 60 percent three years ago to 20 percent now. And lastly, short sales, a process more lenders have now streamlined, are up.

This shift in the sales make-up indicates an increased demand in inventory, a higher presence of investors and a lack of distressed homes hitting the for-sale market. In other words, more potential buyers are competing for fewer homes, which can keep the market from moving forward, or at a stand-still, speakers said.

London and Yun, other speakers at Friday’s event, highlighted San Diego’s lack of housing construction due to an issue that’s specific to this county.

“You’re running out of land,” said Yun, who added that new-home construction has hit a 50-year low nationwide.

London said the age of traditional subdivision construction is over, pushing homebuilders toward going vertical and building in smaller batches.

The lack of inventory and the county’s population growth will help push up prices though the escalation will not be as rapid as in pre-recession days, London said.

Article at: http://www.utsandiego.com/news/2012/sep/07/sdar-summit/