We’ve noticed a subtle but definite climate change in the real estate market over the last month… From multiple offers before even having an open house to the first offers coming in after a couple of weeks, the market is taking a big breath right now.
Imagine our surprise at seeing this video report from abc7news from almost 2 years to the day in 2013 that talks about basically the exact same circumstances!
- Interest rates creeping up – now firmly over 4% – check
- Those same interest rates impacting investors ability to borrow – check
- Buyers worn out from the game – overbidding, multiple offers, all cash, no appraisal contingencies or no contingencies whatsoever – check
The one thing we have right now that we didn’t have two years ago is the financial crisis in Greece. Lucky us! All the reports we’re reading this morning after Greece’s vote to reject the latest bailout package indicate that the impact this will have on our economy, interest rates and housing market is still anyone’s guess. Will it be negative? Almost certainly, but how much? People are wondering what is going to happen to their 401k and investments. So we’re not surprised that people are holding their breath, taking a step back, and seeing what happens for a little while.
If you’re a Buyer who needs to buy now regardless of the market, the upside is that you won’t have to play so many games to get into a house. Also, don’t fret about prices. It’s still firmly a seller’s market with only a month or so inventory in most areas. Prices generally appreciate during a seller market.
In the meantime, stay tuned – we’ll report back on this being temporary or leading to a definitive shift in the Bay Area housing market. Please reach out to us if you have any questions!