A tight inventory of homes for sale is the continuing story for the 2017 real estate market. Here in the East Bay, we have one of the most competitive markets in the country, measured by the number of offers per home and the percent offered over the asking price for sold properties.

 

In the beginning of the year, there were few homes coming on the market, and those homes that hit the market through March saw a feeding frenzy of buyers. As more homes came on the market in April and May, we still saw aggressive overbidding and waiving of contingencies.

 

Summer is typically a slower time as people leave town for graduations, weddings, and vacations, and this year we saw a late rush of homes come on the market, giving a welcome relief to many buyers. So now with a little more inventory, we are witnessing a slowing trend in the number of offers, and even seeing a few price reductions on homes that have received no offers at all. It’s a great time for anyone who has been considering buying but has been scared off by the competition to reconnect about what’s going on in the market.

 

It is possible that we will see things picking up again in the fall, which is typical, but there has been a fundamental change in how long people stay in their homes, and a deep affordability issue that is changing the way the market behaves. People hold on to their homes mush longer now. More buyers are looking for homes in walkable locations, changing the dynamic between prices in the hills and the flats. Many people are wondering if their kids will be able to afford to own a home.

 

Let’s talk about how the market is affecting you, and how I can help.