November Market Update

Happy November folks! I apologize for being a little late in getting the blog out this month. We’ve been very busy these past couple of weeks with the final push to get our clients in contract before the holidays. I am happy to report that we recently got in contract for 4 out of 7 listings and got 4 buyers ratified for a home.

There’s been a pocket of renewed activity for us at Hatch Realty Group and I hope to get our other 3 listings locked in before Thanksgiving. The real estate market in general continues to be a mixed bag of activity not only based on location and price range, but it also fluctuates so much from week to week. One week could be really slow, then the next weekend is busy. In hosting open house, we can only remain vigilant and continue to chug along. The market continually surprises me with its unpredictable dynamics…

For example, a couple weeks ago, one of our listings that has been sitting on the market for over a month received an all-cash lowball offer. It was never officially rejected as the buyer’s agent said, “whenever you are ready to take it, our offer stands”. (This is becoming common practice for buyers in the market place “out for blood,” hoping to find a desperate seller and come across a deal.) Two weeks of inactivity pass, then, out of no where, we have a stellar open house. A neighbor who came during open house submits a full price offer with her agent. Now in multiple counter situation, we eventually got into contract with great terms for above the asking price. Earlier in the week, the seller called and said she was getting impatient and was almost ready to accept the cash offer. Thank goodness she waited. Since open house was really busy, we asked her for a little more time due to the renewed interest. Another unit in the same complex was listed for the same price took a $50k price reduction earlier that week and happily went pending shortly after that.

Generally speaking, the consensus has been that the market has slowed, but I am seeing that some parts of the Bay Area are still very busy. Open houses in the Sunset district of San Francisco or in the Oakland hills still see a constant flow of visitors with up to 70 groups in one weekend. The condo market, on the other hand, has slowed substantially. 1-5 visitors in a week for a condo that’s been on the market for more than two weeks is the norm. As of right now there are 573 condos/TIC’s on the market in San Francisco, 203 of which are priced between $500k and $1,200,000, which seems to be the sweet spot for today’s condo buyers. Average days on market is 49 days. Price drops are becoming more common for homes over 60 days on the market and increased commissions are being offered to procuring brokers for closings before the end of the year. It’s the holiday market, and this happens every year. Whether you’re a buyer or seller looking to get your price, patience is the name of the game for the next couple of weeks. After that, Spring time is when the market picks up again.

For more information on a particular market, please contact Hatch Realty Group today. We will be happy to give you the insight or data on your particular market. HAPPY THANKSGIVING!!!