In a survey of the buyer agents in California, Skyfor’s Buyer Agent Search company discovers that professional licensed buyers agents are concerned as much as consumers. More and more middle class Americans seem to be getting priced out of the market.
A recent survey of Skyfor’s buyer’s agent network in California revealed that its consumer-oriented agents are very concerned about the high prices of real estate in the San Diego, Los Angeles, and Bay areas of the state. They state that more and more of their clients express fear that there may be a real estate bubble in 2018.
For a list of Skyfor’s preferred list of buyers agents in the state of California and the areas they serve, see http://buyeragentsearch.com/associations-and-real-estate-agents/california-buyers-agents-network/
Justin Gramm, one of Skyfor’s preferred agents in the San Diego area states that “Inventory is at a record low, thus it’s taking 2/3 of home buyers more than three months to go under contract”. The number one reason why, as echoed by other buyer agents in the network, is affordability. It is difficult to find a home with the features the buyer wants in the neighborhood they want because more often than not there exists a multiple offer situation and clients get outbid. This has an effect over time of driving prices steadily higher.
Another California broker/owner out of the San Jose area echoes a similar sentiment, saying that prices are at all-time highs in his region due to lack of inventory. This makes it tough to find an affordable home for young families in their late 20s or 30’s who are anticipating purchase of their first homes.
Because Skyfor’s Buyer Agent Search service is available nationally, the CEO of the company recently interviewed an Austin Exclusive Buyer’s Agent, who said that prices are also continuing to escalate in the Austin, TX area. Dan Birchman of the Birchman company said he was concerned that the middle class is getting priced out of the market. If interest rates rise, that will compound the problem as few and fewer average-income households will be able to meet the income/debt ratios needed for a mortgage.
Skyfor is a consumer education and real estate agent referrals company that seeks to help consumers understand what is going on in the real estate markets and use this knowledge to make wise buying or selling decisions.
A spokesperson for Skyfor notes that unforeseen major events may cause the 2018 real estate bubble in many parts of the United States to pop. However, with a persistent lack of inventory in most desirable neighborhoods and cities in the United States, high prices are expected to persist in the foreseeable future.