Is the Market Shifting?
During the months of May and June, I’ve noticed a subtle shift in the real estate market in Los Altos, Los Altos Hills, Mountain View, Sunnyvale, Cupertino, Palo Alto, and other Silicon Valley communities. While it’s normal during this time of year to see a slight downshift from the hot Spring selling season, I’ve observed the following changes in mindset among Buyers and Sellers:
1) The mindset of the Buyers has shifted from the 2015 refrain of “We MUST BUY NOW!” to the 2016 theme of “Let’s wait and see.”
In 2015, the general consensus was that the market was climbing at double digit rates and Buyers’ purchasing power was diminishing. Buyers would compromise their wish lists for the sake of buying into the market before it was too late.
After the first 6 months of 2016, I’m noticing that Buyers seem to be more “choosey” than last year. In other words, if a house requires a Buyer to make too many compromises and trade-offs, then they will likely pass on it and wait for the next one.
2) Not all Sellers are receiving multiple offers over the asking price for their homes.
It’s still happening, but 4 of my last 16 transactions this year have been single offer deals, where I represented either the Buyer or the Seller. Not every home sold for more than the asking price.
3) Despite the misconception that “homes sell themselves over night”, I’ve noticed some homes stay on the market longer than before.
It’s taking more than one weekend to find the right Buyer in the current market.
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