Oh the times, they are a changin.’ At a time of year when things traditionally heat up in our Mid-Peninsula real estate market, we are instead seeing a bit of a shift in the activity, giving way to a more conservative buying pool.
Buyers are getting pickier, forcing sellers to readjust their expectations on what their home will fetch once it has sold.
While the market remains a sellers market (with more potential buyers than inventory), list prices are at an all time high. We are no longer seeing every home sell in a week or less for $200,000 over list price.
The key thing that sellers need to remember is that they have experienced their home values increase by $200,000 or more in the past year, but that is not to say that it will gain an additional $200,000 once offers come in.
Buyers are becoming more interested in a home’s quality and layout. The homes getting multiple offers that are over asking price are gaining the interest because they have the quality and layout to back it up. Other homes are now sitting for 14-plus days ... Gasp...
Here in the San Francisco Bay Area real estate market, we gasp when we hear of something sitting on the market for more than a week. But clear across the country in other markets, great homes will have an average days on market of a month or more in some cases!
Buyers need to realize that if a house doesn't sell in seven days, it shouldn’t always indicate to a buyer that it can be scooped up for under asking price. Conversely, if a home doesn’t sell instantly with multiple offers, a seller shouldn’t admit defeat and take a sub-par offer.
It is truly unrealistic to have a home marketed to every buyer in only one weekend. Oftentimes, it can take two or even three weeks to find the right buyer for a home. Even the most serious of buyers have lives outside of their real estate needs, which can pull them away from their focused home search.
So while we analyze this changing landscape in Mid-Peninsula real estate, it is important for buyers to stay focused and not get discouraged. Writing an offer is the only way to win the home in a multiple offer situation. We understand that this process is a very emotional one, but staying on course will just bring you closer to your dream home. We know it exists, it’s just a matter of having the patience, dedication and the right agent by your side.