I’ve noticed a bit of a phenomenon that suggests to me that prices are beginning to stabilize in certain areas. Overall, prices are still dropping while sales are rising. However, we may be reaching the bottom in specific developments.

In December, I sold a nearly-new 3,100 sq. ft. REO to a client in the southwest area for $380,000. This was a great buy, but prices dropped again early this year, and a few more houses came on the market at a lower price. Today, I can’t find this model listed for anywhere close to this price. The most recent sales are $400,000 and above.

I have a client trying to buy a similar home in good condition for $375,000, but the bank countered at $415,000 and is standing firm. We’ve countered the counter at $385,000, and I’m working to educate the listing agent on why the bank should accept our price. We’ll see who wins. Unfortunately for his seller, the agent is taking it personally, as though it’s his home. He’d be doing his seller a favor by sending over the comps, but I can’t seem to get him to understand that.

In January, another client’s offer was accepted on a 3,000 sq. ft. home in very good condition for $249,900. There were similar homes that he could have bought for $245,000 to $255,000. He closed escrow in late March. Now I’m trying to find a home for his friend, but homes similar to the model he bought are selling for at least $260,000. His friend just offered $270,000 for a similar home in good condition, but our offer was rejected for a higher offer!

The only difference in both of these situations appears to be the timing. Same models, same condition, but what was available in December and January—when almost no one was buying—is selling for more today. Too early to tell if this pattern foreshadows a trend. But I’m sensing that prices have stabilized in these 2 communities when you can’t buy the same house for the same price you could 60 days ago. More buyers, more competition…supply and demand at work.

I’ve shown houses and written offers this week for clients from Alaska, Saskatchewan, San Diego and Calgary; but no one from Las Vegas! Investors are scooping up the best deals, as are out-of-state vacation and retirement home buyers. I hate to see so many locals miss these opportunities. By the time they get that it’s time to buy, the houses will cost more.

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