Could it possibly be both a sellers’ market and a buyers’ market at the same time? Common sense tells us that couldn’t be the case, yet let’s just examine what is happening in our local San Francisco East Bay real estate markets right now.
Lack of Inventory Drives High Prices
It’s no secret that there are very few homes for sale right now. It doesn’t matter where you look – San Ramon – Walnut Creek, Orinda, Berkeley, the common factor is not enough inventory. And in Real Estate, just like everything else, the laws of supply and demand are operating.
Sales in terms of numbers of units sold are much lower than usual, but sale prices are setting new records everywhere you look. As a side note, it is really worth taking the trouble (and spending wisely) to carry out any improvements so that your home shows as well as it can. And staging is generally considered the norm in our area. A home in Canyon Lakes listed at $1,025,000 recently sold for almost 1.2 million. Multiple offers are common, particularly for homes that show really well.
Good Times For Buyers Too?
Although prices are high, and inventory is low, there really is a silver lining if you are a buyer. Have you checked out interest rates lately? At the time of writing, Wells-Fargo is quoting 2.625% for a 30 year conventional fixed rate mortgage, and in my experience, there are usually better deals out there than those offered by Wells-Fargo. Money Has never been so cheap. A $500,000 loan would cost you just over $2,000 per month. Rather less than not so long ago!
Finding the right house may take a little time, and getting your offer accepted can be a challenge, of course. That’s when you begin to appreciate the value of having a good agent in your corner!