"A person who never made a mistake never tried anything new" Albert Einstein
With the holidays fast approaching in the post election mayhem, a lot is going on related to our real estate market. Speaking of the recent election, we've got a new Governator on the horizon and some key propositions were voted on. Propositions 5 and 10 were both voted down; meaning there will not be a change to tax assessments (prop 5) and we will not have a repeal of the Costa-Hawkins Rental Housing Act (prop 10 on rent control). Fun stuff right? :)
Back to the Bay we go!! Most of you are all well aware that West Coast home sales have been soaring to new highs with much controversy related to housing affordability. September home sales can provide a deeper understanding of the shift that might be going on as home sales have fallen about 16% in San Jose. San Francisco on the other hand saw a 33% increase in overall inventory, which is one of the highest spikes in recent years. So rather than taking a few days to sell a house, we are seeing price drops to engage buyers as properties sit longer.
Similarly in So Cal, overall transactions are down with some speculating the rise of interest rates and median home price as the culprits. Are buyers getting priced out of the current market? Although there have been an increase in interest rates, some of the drastic price drops we are seeing could actually be caused by sellers who want too much for their home. Real estate agents might also have a role in this as they work with sellers on a price that they want, however the market will dictate what the home value is. A price "drop" might actually be the true market value caused by regular expectations of the buyer pool.
Regardless of your opinion about what the next few months will bring as it relates to real estate, one thing is certain and that's transactions occur each and every day! Location is key, but a house will always sell if it is priced correctly. The tides might be changing, but with the possibility of the market adjusting, we are always here to help our loyal peeps!