Sunday, May 20, 2007

Condo market in San Jose soft

Unless it has something very special. The condo inventory is increasing and sales are weakening. There will always be sales, yet the winning seller is the one who cuts to the chase faster. A friend's condo was listed at $469,000 in Evergreen area. The competing condo that had been on the market for $499,000 with a better location in the complex, reduced their price to $479,000. They're going in the right direction, yet it makes a buyer decide whether to spend $10k or not on a better location. 50/50 shot perhaps that the location best unit wins. Bad results if they don't. Then the next comp is $469k or lower. When you have an advantage, price is the same as the unit without. That's an easy choice for a buyer and a 100% chance you will get the offer.

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