Sellers would like to fling the spring market into the past after we saw an unusually slow spring market. While year over year sales numbers were similar, the East Bay market showed a 3% decrease in list and sold prices for single family homes. But the startling number was 48% of homes sold for below initial list prices. Sellers and agents needed to come to terms with the new market realities.
Agents who have been in the business for less than 10 years have never seen a neutral, let alone a buyers’ market and are not recommending proper list prices for today. Compounding the market's problems are a few major players, including national brokerages and consumer search portals, playing games with listing exposure at the expense of buyers and sellers. Sellers are being asked by some brokers to limit where their home is listed and buyers can no longer go to one website and see all homes listed in one place.
So how did we get here? Buyers are more cautious and discerning than they were a few years ago. Primarily interest rates are to blame but two other factors loom large. First, the general quality of homes for sale has decreased. Because there is less guarantee for a return on investment on time of sale preparation, fewer sellers are choosing to do upgrades at the time of sale. So the homes we see on the market are trending to look more tired and less prepared than usual. And secondly, as a nation we continue to have difficult conversations with/about ourselves, and as a result buyers are more hesitant to extend themselves. They are like checker players who don't want to commit to a move, keeping their finger on the checker. The irony is buyers who are willing to take the risk are finding greater opportunities at all price points.
Please reach out if you or someone you know is interested in discussing current market conditions. We have experience with both buyers' and sellers’ markets and would love to help you understand all of your options.
