Multiple offers doesn’t mean you’re overpaying

Letter to the Editor

By Inman News, Friday, August 31, 2012.

Inman News®

Re: ‘Survey: Buyers think market is shifting against them‘ (Aug. 29)

Dear Editor:

I am often amazed by articles from companies like Inman and Redfin, and how one sided or incomplete they are while making a broad brush statement.

Yes, prices are up in certain ZIP codes in the East San Francisco Bay Area, and often we have multiple-offer scenarios. But when I told buyers in January of this year to buy property NOW, they often responded, “The market will still go down, and you only want to make a commission now.”

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I often do statistics in my area (just like I did in 2007 when I told buyers NOT to buy property), and already saw this increase happening in the beginning of the year. But even today, and even with multiple-offer scenarios, real estate is still fairly cheap.

Your article only looks at price, and not value. I have shown many times the difference in buying with renting. Not just a simple calculation on paper but a serious investment analysis over a seven-year period. Many times it is cheaper to buy than rent.

Multiple offers does not necessarily mean you are overpaying for the property. In many cases, even with the overbid price, the amounts offered compare to 2003-2004 values.

Money is cheap. If you can get it, borrow as much as you can (my financial opinion). In a couple of short years, when the inflation hits, 3.75 percent interest will seem like a real bargain. Many buyers forget that.

Antoine E. Pirson, MBA
Broker Associate and Real Estate Investment Adviser
Caldecott Properties
Oakland, Calif.

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The total number single family homes in  the residential building stock in the United States will shrink by 4 billion square feet in nine years , a new study by a subsidiary of Navigant Research forecast last week.

Over the last 60 years, the number of single family homes in the United States has grown and the size of each home has increased, growing by about 40 percent between 1975 and 2010. However, the number of single-family homes is now decreasing.  By 2021,the total area of single-family homes in the United States will have shrunk by nearly 4 billion square feet (SF), contracting at a negative compound annual growth rate (CAGR) of 0.2 percent, according to a new report using U.S. Census data from Pike Research, a part of Navigant’s Energy Practice.

“For the first time since World War II, the United States is experiencing increased levels of urbanization,” says senior research analyst Eric Bloom.  “As more people move into cities, they tend to occupy apartments, condominiums, and other attached multi-unit housing types.  By 2021, over one-fourth of the residential stock of the United States will be in multi-unit residential buildings.”

Overall, according to the report, the U.S. residential building stock will grow from 264.3 billion SF in 2011 to 280.1 billion SF in 2021, expanding at a CAGR of 0.6 percent.  That growth will be dwarfed by the expansion in residential building stock in some countries in Asia Pacific – particularly China, where residential buildings will grow by 60 percent in the next decade, reaching more than 600 billion SF by 2021.  Most of this new space will be in attached residences, especially apartments, in China’s dense urban centers.

The report, “Global Building Stock Database”, provides data and forecasts on the size and growth of the global building stock from 2011 to 2021 as well as a qualitative description of key drivers and trends in the building stock. The data covers eight commercial building types (office, retail, education, healthcare, hotels and restaurants, institutional/assembly, warehouse, and transport) and two residential building types single-family detached and multi-unit residential) for seven regions worldwide.

According to the National Association of Home Builders, the housing boom drove new to record levels in the middle of last decade, peaking in January 2006 at a rate of nearly 2.3 million single family homes. But then the bubble burst in late 2006 and 2007 and construction ceased in most parts of the country. Starts plunged to just 478,000 homes in April 2009, the low point during the housing bust.

Construction of new homes slowed slightly in July to an annual rate of 746,000, down 1.1 percent from the revised June rate of 754,000, which was a seven-year high. The decline was concentrated in the single-family sector where starts fell 6.5 percent to an annual rate of 502,000, again down from an elevated rate of 537,000 in June, which was the highest since the end of the home buyer tax credit in 2010, NAHB reported.

While single-family starts were down in July, multifamily construction continues to expand. Housing starts of units in buildings with five or more apartments came in at 229,000 seasonally adjusted annual rate, up 9.6 percent from the revised figure for June. The three-month moving average has been very stable, hovering between 205,000 and 210,000 for the past quarter. On a year-over-year basis, housing starts for 5 units are up strongly, 30 percent since July of 2011.

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RobReportBlog                      –                            September 2012

 

 

2012                        4   homes

2011                        5  homes

2010                        2 homes

2009                        7 homes

2008                         3 homes

2007                        12  homes

2006                        16  homes

2005                         22  homes

2004                        15  homes

2003                        8  homes

RobReportBlog       –                 September 2012  –           Median prices of sold 2 family homes

 

2012                            $442,500

2011                             $375,000

2010                             $522,500

2009                            $460,000

2008                            $388,100

2007                            $575,000

2006                             $608,000

2005                             $623,000

2004                             $620,000

2003                               $442,250

 

Pound Ridge NY Real Estate for Sale this weekend | Pound Ridge NY Homes

RobReportBlog

September 2012

74    homes for sale

$1,197,000   median ask price

$295,000   low price

$4,500,000   high price

4195  average size

$334  average per foot ask price

159  average days on market

$1,423,472  average ask price

The RobReport Blog

September 2, 2012

103   homes for sale

$1,307,000   median ask price

$425,000   low price

$17,000,000    high price

4836    average size

$376  average per foot price

143  average days on market

$1,933,482   average ask price

RobReportBlog

September  2012

36    homes for sale

$1,672,000   median ask price

$26,500,000   high price

$465,000   low price

5676  average size

$479  average ask per foot

195  average days on market

$3,163,967   average ask price

09/02/2012

Chappaqua NY Real Estate for Sale this weekend | Chappaqua NY Homes

RobReportBlog

September 2012

 

 

102  homes for sale

$1,202,450   median ask price

$7,900,000   high price

$429,000   low price

3893  average size

$355  average price per foot

161  average days on market

$1,415,929  average ask price

Sep 2, 2012 10:13:57 AM | Weblogs

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