How do you view recent trends in the Bay Area’s real estate market?
Fellow agents and sales data are pointing to a shift in the market from the breakneck pace that we have experienced over the last four years. The changes are neighborhood specific, but properties are taking longer to sell and they are not garnering as many offers as they did before. Inventories are increasing for luxury homes greater than $3 million.
This does not mean that the sky is falling. Interest rates are still attractively low. I think we will look back at this time and see that there were great deals to be had, just like we look back to 2009-2011 and wish we would have purchased then.
The real estate market is cyclical and savvy investors take advantage of those cycles.
To use another analogy, we are moving from a furious sprint to a healthy jog. It feels like we may be entering a more balanced market that presents opportunities for both buyers and sellers.
Buyers may have more properties to consider. Look for properties that have been on the market for several weeks and don’t be shy about having an inspection contingency or a loan contingency.
Sellers have to be very strategic about pricing. Set a list price that is reasoned, realistic and attractive versus the competition. Now more than ever, you need the advice of an experienced listing agent.