October Market Update

Fall is officially here and the market is changing. Everyone in the industry can feel it and there's no denying it. As we enter a "normalized" market, we will soon forget the frenzy leading up to the "offer due date" and submitting "non-contingent offers" for properties that buyers have only had a chance to visit once before committing to a purchase. Finally! It's about freakin' time I say! More inventory has entered the market and there's more coming on every week, giving would-be buyers options to choose from and time to make a decision. That's not to say that there still isn't multiple offers for the extraordinarily beautiful homes, properties with amazing views and the gross underpriced, but sellers should prepare themselves to be on the market for an average of 30-45 days before getting an offer. Being in the business for 15 years, I have to say that's completely normal. This is the market that we want –equal opportunity for both the buyers and the sellers. Everyone wins.

This fall, we are not only in a seasonal change, but as I mentioned, there's an unusual influx of homes coming on the market. The good news is that the word is spreading and qualified buyers who have dropped out of the race after getting beaten up earlier this year are now coming back. From holding open house, I've been meeting many buyers who are now ready to give it another go ahead. They stand to save 10% from last year in certain parts of the Bay Area. Good for them, but also good for the sellers who are still way ahead of the game.

The uneasy feeling of "sitting on the market" past the initial 14 days is foreign to many sellers and agents and they don't know what to do with themselves. I have been seeing large price drops for homes that have been on the market for less than a month. Does that mean that the sellers were initially "fishing for their price" and now becoming more realistic, or are they getting desperate and feel that the sky is falling and want out? I have no idea, but what I do know is that there are deals to be made out there. If you're looking to buy, now is the time...before rates go up and you have to pay more for the same house.

Sellers, don't price your homes too high. Best practice is to price your home attractively to get as many people through the door as possible. Don't set an offer date and just wait for offers to come and review them as they come in. If you make the buyers wait, a similar or better home may come on the market and they move on to that one instead.

6 months ago, a friend of mine sold a home in the Westborough neighborhood of SSF for $1,250,000. He was the listing agent and he was holding his breath as they waited for the appraisal to come in. It did. It came in at the purchase price of $1,250,000 breaking records. Today, there are 4 homes in similar size, location and condition priced at approx. $850,000 just sitting on the market now for more than 30 days. No offers and no explanation why...These are 4 great options for buyers who want a single family home vs a condo. 6 months ago, it was virtually impossible to buy a home in SSF with 3 bedrooms for under $1M. Now they can have their pick. That scenario is a dramatic example, but it's the truth.

As a member of the Top Agent Network, which is a collective of the top 10% of agents in my market area, I get a heads up on listings before they hit the market. Last week between September 19-25th, 52 new listings (not currently on the MLS-but will be coming soon) were posted on the site. Now is the time to buy!

For more information on a particular market or valuation on your property, please reach out for a free consultation. We will be happy to advise you on your home buying and selling needs! 1-888-55-HATCH (42824). This is the type of market when experience matters! You want someone who knows what they are doing and will work hard for your best interest on your side. Call Hatch Realty Group today!