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Buyers camping out to buy a condo

by Rob Regan on February 19, 2013

Reading this article in the San Jose Mercury News I once again got that feeling as if I took a time machine back to 2003/2004.   People actually camped in their cars for 6 days to be able to buy a condo.  Wow!

Most of the towns mentioned in the above article are outside of San Francisco.  Places like Concord are hot, even the retirement community of Rossmoor in Walnut Creek.  This is how it went nearly 10 years ago, where the wild fire of over bidding and big price appreciation spread out from the City and reached into areas that didn’t necessarily have the same fundamentals as San Francisco.

So just how much further can this market run?   If we learned anything from the 2003 to 2008 period it is to watch what lenders are doing.  Each time the market slowed down, it would pick right back up once a new loan program was introduced.   We’re still in a pretty tight lending criteria environment.  If prices are to continue on an upward spiral, it will have to get easier to qualify for loans.  Each time I hear from a lender it does sound like we’re moving in that direction, but still very, very slowly.  Somethings got to give sooner or later – either the market cools off, or loans get easier.  

 

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