Pocket Listings Surging Experts Say
Pocket Listings As A Home Sales Style
Can Have Repercussions for Sellers
Those with experience in the labyrinthine world of home sales will be familiar with the term "pocket sale". If you're not an agent, broker, or you've never sold or purchased a home this way, the term may be new to you. A "pocket listing" is the listing of a property where the broker witholds the property information from any multiple listing service or advertising. A pocket listing may be closed ended or open ended. In other words, the agreement may state the listing will be witheld from the MLS and advertising for a specified period and then information will be distributed, or the entire listing period may be involved. Whatever the individual case, pocket listings are becoming more and more prevalent in home sales in our current market.
Why creat a Pocket listing? Well, the advantages to the broker are obvious. If a broker can sell the property to one of his own clients, he keeps the entire commission by "double ending" the property. Some brokers with who do these types of home sales and hold these listings will open them up to other agents in their office. In this case the broker keeps the entire commission within the brokerage. Additionally, the agent doesn't spend any money on advertising the home.
The advantages to the Seller are more difficult to see. Some people find the process of home sales difficult. They don't like hordes of prospective buyers and "lookey-loos" traipsing through their property, or they are uncomfortable with "the public" knowing their home is for sale. This type of Seller may appreciate the quiet efficiency of this type of home sale. However, there may be disadvantages as well.
Here is an article by Kenneth R. Harney in the Real Estate section of the Washington Post which discusses the in's and out's of Pocket Listings:
"Pocket listings are surging, real estate experts say, because of historically low inventories of homes for sale in major metropolitan areas, …"
Is A Pocket Listing Your Home Sales Style?
There are many forces pushing Pocket Listings into the ranks of the more popular forms of home sales. However, if you're considering it, you should be aware of the benefits and the drawbacks. Pocket listings can restrict the number of potential buyers who will see your home, thereby restricting the number of offers and finally your selling price as well. You should also be aware of the potential conflict of interest that happens unavoidably when both sides in a transaction are represented by one brokerage. But, if those things are all right with you and you're more concerned with crowds and publicity, then the pocket style of home sales may be for you.
Real Estate Values:
Is Housing In Bubble Trouble?
Some Analysts Believe The Recent And Swift Rise In Real Estate Values May Foreshadow Another Market "Bubble"
As anyone who reads these pages is aware, real estate values have been climbing quickly nationwide. After the "big dump" of a few years ago, the market bottomed, played around at those bottom levels for a while, and then began to climb as the economy started to improve and consumer confidence began to grow. With so many REO properties on the market at low prices, the Investor market became a driving force in the recovery of real estate values.
Some analysts now believe that we are seeing signs of another "bubble" in the market. This would not be good news for the future. While most are seeing a market in need of a "correction", the "bubble-seers" are more pessimistic. The correction they see coming is much more extreme, with real estate values again plummeting sharply. Are they correct?
Here's an article by Pat Mertz Esswein from "Kiplinger's Personal Finance". In it, Pat interviews Mark Vitner, Managing Director and Senior Economist at Wells Fargo:
"Follow @PatEsswein. Andy McMillan/Redux. Wells Fargo's Mark Vitner. Mark Vitner is a managing director and senior economist for Wells Fargo. He tracks trends in inflation and the U.S. housing markets, commercial real estate and regional economies.Kiplinger Personal Finance"
Real Estate Values Put Sellers In The Driver's Seat
With Investors pushing the market upwards, and the current lack of inventory, the future is unclear. It's difficult to tell right now who is correct as far as the future of real estate values … those who see a coming "correction", or those who fear we are headed for "bubble trouble". One thing is clear, however, and that is that currently it is a good time to sell. Whatever way you look at it, real estate values are up, homes are selling, inventory is not growing, and we're just moving in to what is traditionally called the "Selling Season".
If you're currently dickering about whether or not it's a good time to sell your home … it is. And, if you're looking for professional and aggressive assistance, why not give me a call? I can help you sell any type of home in any area of Southern California, and I'd be happy to provide you with all the facts and figures concerning your particular situation. So if you have the need, please don't be shy. Call me at the number on this website, and I'll be glad to help.
Real Estate Values.
California Home Sales:
Califonia Among Leaders In Continuing Increase In Home Values
California Home Sales Prices Rise 17.2%
Year Over Year In March
The rise in California home sales prices continues. CoreLogic is reporting that nationwide the home price index rose 10.5% in March from the level it held in March of last year. Nevada let that rise at 22.2%, while California home sales put the state in 2nd place at 17.2%. Arizona, Idaho, and Oregon completed the top 5 in that order.
The rise in prices nationwide and in California home sales is being driven by rising demand among both home buyers and investors, combined with a lack of inventory.
Here's the press release from CoreLogic published in the Sacramento Bee:
"IRVINE, Calif., May 7, 2013 –Including distressed sales, the five states with the highest home price appreciation were: Nevada (+22.2 percent), California (+17.2 percent), Arizona (+16.8 percent), Idaho (+14.5 percent) and Oregon (+14.3 percent)…"
"Selling Season" Supports Short Term Continuation
Of Upward Movement In California Home Sales Prices
With a rise in prices as steep as we've seen, both nationally and in California home sales figures as well, some analysts feel the market may be overblown and due for a correction. However, it's being buoyed increasing demand, lack of inventory … and now one more seasonal influence. We are moving into what is known as "selling season". The summer months are traditionally a much more active time in the residential real estate market. Children are out of school and besides, no one wants to move in the winter when there may be snow on the ground. So, here we are in a market that is just approaching what is usually the "best" time of the year. The "selling season" influence is poised to combine with the other factors supporting the market and will probably keep California home sales prices rising through the summer.
California Home Sales.
Real Estate Values:
NY Commercial Posts Two Huge Deals
Commercial Real Estate Values In The Big Apple
Have Regained Losses And More
There's interesting news regarding commercial real estate values coming out of New York this morning. Two high-quality commercial building in the Big Apple are in escrow for a total of over $1 Billion. At $933 and $1,300 per square foot, these two sales are more good news concerning commercial real estate values in New York and, by extension, the markets in other similar cities as well … such as Los Angeles.
As we all know, when the values downturn happened a few years ago, commercial values went south with everything else. The economic downturn affected every sector of the real estate market … and everything else as well. Now, however, it can be said that in New York at least, which is a leading market and a fairly good indicator of what similar cities either are experiencing now or will shortly experience, quality commercial property has regained the losses incurred during the downturn … and then some.
Here's an article by Ilaina Jonas in Reuters with the particulars:
"Top-quality buildings have more than recovered the value they had lost in the downturn that followed the financial crisis of 2008. In April, the Green Street CPPI All-Property Index. which measures values of high-quality U.S. commercial real estate …"
What This Means To Commercial Real Estate Values
In The Near Future Is Still Difficult To Predict
So commercial real estate values have pulled up and over the levels of what they were before the downturn. At least they have in New York. Does this mean the "all clear" has sounded? No. Not really. While this is, of course, good news, analysts disagree as to where things go from here. Some believe that prices have risen too far and too fast, creating a market that is somewhat overblown. Others argue that as long as interest rates remain at historically low rates, prices will continue to rise as investors are will to take on more "cheap money" debt. So the feeling is we're either looking at a coming correction in commercial real estate values or a continued rise in prices.
Either way, if we take the long-term view, we can consider both to be good news. There is no sign that values are in a true "bubble" situation … where things could simply blow up and crash. No one expects that. A "correction" at this point simply means a slowing of the rate at which values are rising, and possibly a downturn of sorts for a period of time before real estate values begin to climb again. That's simply a healthy market balancing itself out, and not something to be feared. Whether we get a few months of correction or we don't, it appears that commercial real estate is becoming a healthier market than we've seen in a long time.
Real Estate Values.
California Home Sales:
Home Prices See Largest Annual Growth
In 7 Years
California Home Sales Inventory
Less Than 3 Month Supply In March
The California home sales market is seeing prices rise and inventory drop. The Standard & Poor's/Case-Shiller index shows that home prices in the USA's 20 largest cities were up 9.3% over this same time last year. There is worry, however, that the report should be taken "with a grain of salt". Since we're talking about the 20 largest cities, there's a feeling that the report may be skewed by including most of the countries quickest rebounding markets. The Southwest includes many of these locations, and real estate is rebounding quicker here than in other parts of the nation. California home sales are among those leading the pack.
Here's an article from ABCNews 10 in Sacramento that explains it all.
"Nationwide, there was a 4.7-month supply of homes for sale in March, meaning they would all sell in that time frame if sales continued at March's pace and no supply was added. Typically, a six-month supply is considered balanced. California markets have even tighter supplies of homes for sale, dropping below 3 months in March, the California Association of Realtors says. …News10.net"
California Home Sales Prices Squeezed Upwards By Lack Of Inventory
The California home sales market is being squeezed by low inventory. Competition is high among buyers and the lack of new REO offerings contributes as well. Prices in many areas have risen quickly enough to cause worry among many analysts. The worry is not that we're experiencing another "bubble" … we're far from that. The worry is that some areas are overblown enough to warrant a pull-back in sales prices as a correction in a long-term upward trend. California home sales are a perfect example of that, and we may be looking at a bit of a correction here in the next couple of months.
California Home Sales.