- Price reductions
- Fewer offers on the offer date
- Offer dates with no offers
- Properties staying on the market longer
All of these are signs of a changing market!
Last week, I helped two buyers purchase homes in Eureka Valley in San Francisco – one listed for $1.6M and one listed for $4.2M. In each of these situations the seller only received two offers, including my client’s. The listing agent for each home expected to receive more offers based on the interest in the home, and based on the number of “disclosure packages” requested by serious buyers.
Interestingly, after both my clients went into contract, the listing agent on each property said she received calls from agents whose clients wanted to make an offer but didn’t because they thought it would sell for more (see my last blog post about the problems with listing a property for sale at a low price as a marketing tactic).
Rising interest rates are definitely pushing some buyers out of the market, while according to my colleagues other buyers have dropped out of the market due to fatigue over multiple offer craziness. At the same time, while inventory is still relatively low sellers appear to be responding to the hot market by listing their properties, but it may be a bit late as more sellers list at the same time.
So as demand lessens and inventory rises we may finally see a cooling of the market, though agents at my recent sales meeting felt that while the market was moderating they don’t see huge price drops yet. All agree that properties that are renovated and staged are still receiving offers relatively quickly, with many of these still receiving multiple offers.
Let me know if you’d like me to consult with you about possibly selling your home or condo – or if you are looking to buy, how to write that winning offer!