Tuesday, October 30, 2007

It's a buyer's market, but not for long

This is a great time to be a buyer. Interest rates are low, inventory is high, and prices on some properties are coming down. This is the kind of opportunity every buyer looks for. So, how long will it last? Not long.

The inventory of single-family homes in Los Altos as of last Friday was 53 homes. This is about 70% of the inventory in the same week last year. More importantly, inventory is dropping. That means that the ability for buyers to strike a bargain is dimishing. It all comes down to seller motivation - if they want to sell, they will. If they don't, a low offer won't fly. Some sellers are actually backing out of transactions. So, know what you want and buy it while you can.

I'm projecting a 1/4 point drop. Others are saying 1/2 point drop. Either way, it's a win for all buyers and owners with variable-rate mortgages.

This is a great local newsletter that costs only $20/year. Visit http://www.lannonline.org/ to see past issues and other relevant topics. They talk about individual neighborhoods, current issues in Los Altos, new construction, planning department applications, and other topics.

Check out L'Acquolina at the corner of Main and First Streets downtown. Opening soon, it features a refined and inviting atmosphere with northern Italian / southern French cuisine that's reasonably priced. Check it out!


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