Our East Bay luxury home market has an active, enthusiastic pool of buyers who are driving up activity by making multiple offers on many well-priced homes.
Piedmont, CA (Vocus/PRWEB) June 22, 2011
Although Bay Area homes are selling at 2005 prices and interest rates are at an all-time low, most high-end home buyers are paying cash for their homes, according to D.J.Grubb, co-owner of The Grubb Company, the Berkeley-Oakland-Piedmont real estate sales expert.
“Our East Bay luxury home market has an active, enthusiastic pool of buyers who are driving up activity by making multiple offers on many well-priced homes,” said Grubb. “We do not have the home inventory gluts found in other parts of the state and country.”
Grubb says that his 62 agents are selling between 50 and 60 homes per month, and approximately 75% of those in the $3 to 6 million range are purchased without any financing. The other 25% of homes are sold with a large cash down payment— and parents are becoming a larger part of the financing equation.
“The banks are only paying 3 to 4% interest on savings plans and have tightened up their lending qualifications,” said Grubb. “Parents can help their kids get into a home and make 5 to 6% interest, which is more profitable for them, so it’s a win-win situation.”
London has a similar market, according to Grubb. “I was in London recently, and the real estate landscape look the same—although a large percentage of their all-cash purchases are from foreign investors,” said Grubb.
For more information about the Bay Area residential real estate market or any of The Grubb Company’s services, please call them at (510) 338-4445 or visit them on the web at grubbco.com.
About the Grubb Company
Founded in 1967 by Donald J. Grubb Sr. and now run by Principals D.J. Grubb and John Karnay, the Grubb Company is a Berkeley, Oakland, and Piedmont real estate brokerage that specializes in luxury home sales.