The Sky Is Definitely Not Falling!

Hi folks! The sun is out today and I thought it would be a good time to give you an update on the changing real estate market.

As someone who is currently deep in the trenches actively looking for a home for myself, all while helping clients buy and sell in this market, I have to tell you that contrary to what we are hearing that the economy is going down, the real estate market in the Bay Area is heating up. We are now officially back to multiple offers situations especially in desirable areas within good school districts.

Yes, the rates have gone up quite a bit. They are double from what it was last year, and it is affecting the affordability of many buyers, but despite that and all the negative news, the market remains strong in much of the Peninsula and beyond! 

One home in Millbrae just went pending after a week on the market with 16 offers and is now in contract for more than $400k over list. Another home in the Baywood Neighborhood of San Mateo, which was on the market for two weeks received three offers. One offer was below list price and the other two were "well above the list price", said the listing agent.

Sellers, if you have a home in a good school district that you are hesitating to sell because of uncertainty, do not be afraid. "The market is very active," said one listing agent regarding interest on his Burlingame listing. They had 40-60 visitors at Open House over the weekend which will likely translate to bonafide buyers who were standing on the sidelines during the winter months.

Lack of inventory in the $2M to $4M range is stock full of buyers. One agent told me, "there's a million of you out there," suggesting that if you want to win a bid in this neighborhood, you have to be aggressive in your offer writing. Lowball offers are no longer possible and homes that were previously sitting on the market during the winter months have since been absorbed.

Teaser prices also are back - luring buyers out in droves. One home in Alameda we recently sold was listed for $1,095,000 and closed at $1.6M market value.

Even in San Francisco where sales are reported to be 40% below what it was last year, in my opinion, is still moving.The seller of our listing on 437 Campbell decided to be aggressive and list his home with a teaser price of $999k. He was targeting a sales price of $1.2M and got multiple offers in a week and is now in contract above that!

Rates these days are at around 6%. Lenders we work with are saying that they have gotten more applications in the past two weeks for new mortgages than they have in the past 3 months combined. I predict a really strong buying season in the months ahead....my guess is, like me, they are trying to lock in a home now before rates go up even more as planned throughout the year.

Calling all sellers! Where are you? Please reach out for a no-obligation consultation on your property. There are also multiple ways for us to test the market place before you commit to selling your property. Ask me how!

Note: Every neighborhood is different and if you would like specifics on your target area, please feel free to reach out and we will be happy to help! 

Have a great day and I hope you enjoy this little break of sunshine!

~Monica