Yes it is.
I don't know why, but there is a sudden frenzied interest.
Examples:
- I recently put small home on the market in Folsom. It was in good condition, except for carpeting. The seller priced it at $379K. We had over 70 people come through the open house. We ended up with 4 offers, topping out at $390K. 3 other units, the same model, also went pending last week, one listed at $379K, two listed at $390K. - To put it in perspective, I sold the same model a couple of years ago for $249K, and back in 2005, it sold for $439K.
- I put a home on the market in Rosemont. 1500 sq ft, remodeled, priced at $269K. We received 3 offers in 3 days on market, topping out at $276K.
- I took some clients to see a house in Orangevale. The seller said they had non-stop showings Saturday and Sunday. My clients made an offer, over asking price, and we were told they had 10 offers so far and will get back to us.
Other agents are reporting similar experiences.
I'm not sure what's driving it.
Maybe fear of a rise in rates? They've been creeping up, but still around 4%.
Shrinking inventory? We currently have 143 homes on the market in Folsom, compared to 174 at this time last year. Confidence in the economy? Unemployment is down, but we're in the middle of a drought. I don't know.
I just know that some market segments, like the sub $400K market in Folsom is now pushing toward the prices we had right before the crash.
It is a bit different now, with interest rates about 1/3 below what they were back then, and we no longer have 'stated income' or 'liars loans', but the run up on prices is sudden and peculiar.
We'll see where this goes.
Thoughts?