The past several weeks have seen a subtle but noticeable change in the real estate market on the Peninsula. A cooling trend has slowly hit the brakes on a previously white-hot market, and sellers aren’t getting the action they were in the first half of 2014.
“For the past month or so there’s been a slight shift away from the trends we were seeing towards the end of 2013 and the beginning of 2014. Namely, we aren’t receiving the types of responses to homes that we were getting used to – multiple offers, over-asking sales prices, and lightning-fast sales. We’re leveling out a little, and I think that’s good news for buyers.” – Bryan Jacobs, RealSmart Broker
Homes on the peninsula aren’t selling as quickly as before, with the average time on market in Redwood City currently at 24 days, compared to 19 days in March of this year1. We’re also seeing a reduced number of multiple offers, with homes that might have gotten 10+ in the early months of 2014 now getting half of that or less.
Part of the cooling trend stems from a rush of inventory in the area. Zealous sellers continue to flood the market with new homes, pushing the months of inventory to 3 compared to just 1.9 in January of this year. That means more supply, driving down the previously skyrocketing demand.
So what does this mean for real estate as a whole? Basically, what we’ve got is neither a “sellers” nor a “buyer’s market,” strictly speaking – it’s hovering somewhere in between. However, according to the experts here at RealSmart, it might be leaning just slightly in the favor of buyers.
“My advice to those looking to buy is to act now. The market is favoring buyers, but we can’t tell how long it will stay this way. Your best bet is to take the plunge and make that offer, there really hasn’t been a better time in several years.” – Camilo Perez, RealSmart Realtor
If you’re a potential buyer, or even just curious about the buying process, reach out to any of the seasoned realtors here at RealSmart on our contact page.
1 – Data from MLS deemed reliable but not guaranteed.
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