Market Update: June 2022
Early Summer 2022 Update
As we kick off the start of summer, we are finally starting to see some movement in home sales. Sales under $5m have generally seen a considerable decline in the number of homes sold so far this year compared to last year and the number of homes sold over $5M have held up to the same volume levels that we saw in 2021. As for the rest of Bay Area market, we are starting to see some cooling in the pending home sales data in all price ranges.
Market changes are often uneven in the early months of a transitional year with one home selling in days for 25% over the list price while the home next door may still be on the market with the sellers considering a price reduction. As markets cool – and markets are cooling across the county—buyers become more discriminating and multiple offers and overbidding declines. Listings that are well prepared and priced correctly will have an increasing advantage.
All the information out there is not doom and gloom. The unemployment data is still strong which means jobs are still plentiful and most buyers in our area will still be able to buy homes, but will they choose to with the consumer confidence index the lowest it has been in years? Only time will tell.
We still would not bet against our local real estate market and have provided the chart below to remind everyone that purchasing a home is a long term investment and no matter what the economy wants to throw at us, our local market has proven over time that there is no better place to live and own real estate.
Our advice to buyers: Now is the time to take advantage of less competition. Be bold and move forward while other may choose to hit the pause button. With interest rates still expected to rise even more you’ll be happy you got into contract earlier rather than later.
Our advice to sellers: There are more listings coming on the market, so it’s even more important to prepare your home properly and above all else price it accoredingly for the current market conditions. It’s still a sellers market in even if demand is lower than it has been.
Please call or text if I can provide answer to any of your real estate questions.