I was really excited to have my website re-built last Spring so that I could update it myself and Blog! But somehow, I was too busy serving my clients this past summer to make any entries.
The media has continued to pound our senses with tales of the impending pop of the Bay Area housing market. For the last few years, the media has published stories on a regular basis about the Bubble and how it is ready to burst. While there have been some changes in the market, prices, on average are staying stable.
About the changes in the market: The number of homes and condos on the market has doubled, and in some neighborhoods tripled over last years' supply. The number of homes receiving multiple offers has declined, and in most cases where there are multiple offers, there might be 3 or 4 buyers who are coming to the table instead of 15 or 20. In many cases, there is just one party interested in buying the property. The results of this increased supply and decreased are that most properties are taking longer to sell. And how about price? Well some properties are selling over asking, some at asking and some below. The sales price relative to the asking price is just a function of how realistic the Sellers were when they priced the home. Price it too high, and the property will sit on the market for a long time. Why? Because San Francisco Buyers have been trained over the years to pay over asking on houses and condos, so when a property is priced too high, Buyers are reluctant to offer under asking. They often don't bid at all.
The biggest change I see in this market is that Buyers do have more power. Buyers are asking Sellers for credits to repair deficiences in the homes. Buyers are also choosing homes that are in great condition and show well. In many cases, I think it pays for Sellers to make some minor repairs, to paint and stage most properties. Their homes show better, and unless they are purchasing a fixer, Buyers prefer to move into homes where they will not need to do a lot of work.
Bursting Bubble? I don't think so. We have moved into a more realistic market where Buyers have more choice.