Transitioning Market- Will It Lead to Falling Prices?
Local real estate markets have been transitioning during Q3 from overheated to more balanced markets. The third quarter ended with very weak September sales statistics for most communities, signaling a weakening market instead of the typical strong fall market (September to November).
What does a transitioning real estate market look like? Traits of a transitional market include:
1. Higher inventory of homes for sale in local markets.
2. Fewer closed sales per month in most markets.
3. Markets for high-priced homes (over $5 million) and outlying areas slowing more quickly.
4. Homebuyers don’t feel pressured to buy, and are more selective about homes.
Regarding the last point, issues like high asking prices, poor condition, or noisy/busy locations matter to buyers again.
Where is the local real estate market heading?
We believe (but of course don’t know) that home prices have peaked for the current market cycle, and likely will begin declining sometime in 2019. If you are planning to sell your home in 2019, you should plan to do so as early in the year as possible to avoid declining home prices. Now is the time to begin preparing your home for sale, so it can be sold quickly when you are ready to move in 2019. Call us at 650-823-8057 or email us at jstricker@apr.com for more local market insight, complimentary advice on what to do to maximize your home’s sales price, and reliable contractor resources.
