A quick update on the current market dynamics happening in the Bay Area.
As we transition into the fall and winter of 2023, the real estate market is showcasing some unexpected dynamics that are worth exploring. Recent data reveals a noticeable shift in market trends compared to the previous year, particularly in San Mateo and Santa Clara Counties.
In San Mateo County, home sales have experienced a 14% decrease, while the drop is even more pronounced in Santa Clara County at 23%. This decline is significantly impacting the average sales price in both regions.
“Homes are still selling in the Bay Area.”
Despite the decrease in sales, San Mateo County has seen a modest 5% increase in home prices. Conversely, Santa Clara County has witnessed an impressive 9% surge in home prices, indicating sustained high demand in the market.
The tight affordability landscape is prompting a notable trend: The list price is becoming a critical factor in attracting buyer interest. With a sense of hesitation among buyers, there’s a preference to wait and see if sellers will reduce their prices before making an offer. To navigate this, our advice to prospective buyers is to make an offer at a price that feels fair for the desired property.
A common concern among buyers is the fear of insulting sellers with a lower offer. However, it’s crucial to understand that the biggest insult is to never make an offer. Taking this step is vital in the current market environment.
For those looking to sell in the upcoming months, it’s essential to be aware of buyer sensitivity to list prices. Our team provides valuable feedback on buyer interest and recommends adjustments to the price to attract the most qualified buyers.
Despite the shifting market dynamics, the bottom line remains positive–homes are still selling, and buyers are eager to make their moves in the Bay Area. Whether you’re considering buying or selling, now is the time to explore your options. If you’re contemplating a real estate decision in the coming months, reach out to us by phone or email. Let’s have a conversation about your options and how we can help you navigate the current real estate landscape.