Bay Area Buying Frenzy

I have been working with 2 separate buyers who have been trying to purchase a 2 bedroom condo in two different areas. Many of the condos are bank owned and are priced under $175,000. In every instance we have been involved in multiple offer situations. Both of my buyers are cash buyers and so far that has not mattered. The last property had 15 offers on it and it went way over asking price. I keep hearing that the economy is very weak and that we haven’t hit bottom yet but someone needs to tell these buyers that. It seems like there are still many people who have cash to burn. My guess is that they don’t care if prices still decline. These buyers are looking for a steady income in the form of monthly rents. People have to live somewhere and if you own property there is a good chance that you can rent it. Better than putting money in stocks or in bonds. Rents in California have been going up. One bedroom apartments that rented for $950 just two years ago are now up to $1250. If you have some spare cash lying around it may not be a bad idea to invest in a rental. That is if you don’t mind getting involved in a bidding war to buy one.

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