Downsizing in San Carlos
April 2, 2013
Going the Other Direction.
A few weeks ago, we talked about the challenges facing the “move-up” buyers in San Carlos — those people who already own a home in San Carlos but want to move up to something bigger and still stay in town. In a market that so strongly favors sellers right now, finding (and being able to purchase) their replacement home is the biggest challenge this group faces, because selling their current home in this market would be no problem whatsoever.
What's interesting is that there is a smaller but still very important group of potential home sellers in San Carlos that's trying to do the exact opposite of the move-up buyer. These are the homeowners who suddenly find themselves in a much larger home than they need, or can afford, to live in — yet they still want to call San Carlos home. Most often they are the empty-nesters who no longer need that 4 or 5 bedroom home since they kids have all flown the coop. They comprise a smaller group called the “down-sizers“, and they are no less important in this market than the move-up buyers.
Much like the move-up buyer, the typical downsizer will have no problem selling their current home. The big challenge is finding a suitable smaller home in San Carlos. And with a whopping 11 homes for sale in the entire City right now, there's simply not a lot of options for either group. Nobody wants to run the risk of having to live in transitional housing after their home sells. Moving is already a huge pain in the rear, so doing it twice is not high on most people's list.
The sellers in both groups who have enough equity in their home, or who are in a strong enough financial position to not have to sell their current home before they buy the replacement home, are at a distinct advantage over those who don't. But in either case, nobody is willing to put their home on the market until they've identified where they're going next. It's a significant contributing factor why the inventory of homes for sale is so low in San Carlos right now.
A Hidden Inventory.
When you start to take stock of the number of homes on both sides of this fence, it's a pretty significant number. I have no fewer than four different move-up buyers in various locations in San Carlos with different degrees of home sizes and bedroom counts, and I know that many other agents have the same situation. On the flip side, there's likely a smaller number of downsizers who would be a perfect fit for one of these beautiful homes.
But since neither side is willing to put their homes on the market, it has created a pool of “hidden” inventory that could be made available if only there was a way solve both problems at the same time — almost like connecting the dots between these specific buyers and sellers.
Are you one of those downsizers who can't seem to find the right place in San Carlos to call your next home? If so, contact me — there may be a creative and mutually beneficial solution right under our collective noses.