Everybody knows that a plane experiencing a “stall” can lead to a crash, and of course as with airplanes, home values can rise and fall quickly too. Fortunately for everyone involved in home ownership, the consequence of a housing stall are not nearly as dire.
But a stall appears to be what we are experiencing in our local housing market. Since 2012 sellers have more-or-less across the board enjoyed listing their home only to receive more offers and money than they could have imagined.
That’s beginning to change, though the housing price numbers have yet to reflect the shift we’re experiencing.
Notice in the graphic that the inventory last year grew steadily and then began to decline as more buyers entered the market. This year that trend has almost reversed itself, with more inventory developing as the year goes on. While overall there are no more homes being listed than there were last year, and no fewer sales—yet year to date there’s been a four-fold increase in homes with price decreases and that number translates into 11% rise in price decreases county-wide this year as compared to last.
We’ve also noticed a change in the mind-set of many sellers this year. Sellers remain bullish and are declaring what price they want for their home, only to find disappointment when the market doesn’t agree with them, and with Buyers now wondering if this is the beginning of a market correction.
Buyers have become so used to being in a competitive market, that when they find a home which has no other offers, instead of jumping at the opportunity, many choose to sit back and ponder what‘s wrong with the house.
The result is we are seeing is a much need shift in our market to one that is more sustainable in the long term. The new mindset will take some getting used to for buyers, sellers and real estate agents, and it may not last beyond the elections, but it’s here today, and today is the only market we can guarantee.
Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 20 years experience in helping sellers and buyers in their community. They may be reached at (650) 508.1441 or emailed at firstname.lastname@example.org.
The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.