MARKET TURNAROUND UNDERWAY

Green shoots appearing in the Real Estate Market?


I'm seeing some interesting signs which in my experience and opinion point towards a turnaround in the local scene. IN the past downturns I noted things which later proved to be signals that things are turning around. My personal observation in past cycles has been that marginal properties , such as those on busy streets or with other incurable defects , begin to sell. THAT is happening all over the West Valley. Whether the home is on Victory Boulevard or has a backyard that is overlooked by a multi-story commercial building, these properties are starting exhibit "SOLD" signs. The next sign is a little more subtle and not apparent to the casual viewer. I'm seeing investment groups from the East Coast, Malaysia and China, put together by guys like Goldman Sachs, buying properties for ALL CASH at LIST PRICE or ABOVE LIST PRICE! What this indicates is that "hot money" sees value (and upside) in local properties and is buying with an eye towards future appreciation. NOT FLIPS. They plan to get cash flow as a rental and sell in a future appreciating market. These guys are not where they are today by being wrong. Bear that in mind before you tell me Dr. Housing Bubble or Nouriel Roubini says there's more downside to come. Finally, a sure sign that something is happening is that LOTS , dirt unimproved lots, are starting to sell. I'm working with a builder right now and we are on the front line with this. About 4 out of the 15 lots we were interested in since November have sold. People don't buy lots unless they are going to build for the most part, so this indicates there will be some action in the previously moribund construction trades. So, things are looking up!
If you'd like to speak with me regarding buying or selling into this newly dynamic market, I'm available @ (805) 907-5211.