Changes are happening!
What I'm seeing: Since last month, I have noticed that there are fewer buyers in the market which means fewer offers on many homes in the East Bay. What is important to note is that some properties are seeing lower offer prices than just 2-6 weeks ago, but that is not true in every case, so nothing has been predictable. Sometimes a buyer's personal need or motivation may be the reason why a home has sold for a neighborhood-high price which can skew average sales price data. Sellers, when looking at sold data to see what your property may be worth, please do not just look at one or two high sales, consider all of the recent sales in the area. What a home sold for a year ago is rarely considered by a buyer, as they tend to review the last 3 to 6 months worth of data. Planning what a seller may spend in pre-marketing preparations now needs to be decided knowing that you may get less in a sales price than homes in your area received just a month or two ago. Additionally, I am seeing some homes stay on the market longer than before, so a seller needs to plan for longer carrying costs. Also, if you are selling, this does not mean you can do nothing and get a good price - this means that your property's assets and challenges require more consideration before creating a punch list, as buyers will certainly analyze everything before they decide to write or walk away from a property. Bottom line: the market is shifting, recent neighborhood sales are only a snapshot in history and will not necessarily dictate what your home will sell for in the future. For the past few years, buyers have had to adjust their expectations on what their money can buy as they have seen prices actively jump in value while shopping for a property. Now sellers are in a similar position and should start adjusting their expectations. The market will likely be a place of compromise, both buyers and sellers adjusting so they can meet in agreement. Nothing happens unless both a buyer and a seller agree.
When I started this career in 2004, I knew that I would always lead with putting my clients' needs first, working in the most approachable, creative way, leading with complete honesty, always keeping my values. Since I have been in this business, I have worked in both buyer markets and seller markets. Our local market is unique and our housing stock is very diverse. No matter what the market, price-per-square foot does not give us the winning formula for value; every home is maintained and improved differently, homeowner's personal design choices may not appeal to all buyers, and every buyer has a different set of criteria for a home they are wanting and willing to live in. If you have watched the news lately, you've probably seen that interest rates have further increased, the stock market has declined, and food and gas prices are rising. So a great deal of thought goes into how I navigate and consult with clients. Regardless of the market, if a seller wants to sell, I make sure that selling is the best option for them before we proceed. If you are thinking about selling your home, I will always ask "Why?" This is not to pry, but sometimes holding on to your property is best. For example if you are thinking of moving out of the area, is there a chance that you will want to move back to the East Bay and wish you had this specific property? Can you afford to keep it? Are there modifications/renovations that you can make to your home to make it a better fit for you so you can stay in it?
For buyers, in addition to analyzing the property's condition and sold data in the area, the bigger question is: will this property fit your needs long term? Buying a home should not be for a temporary need; when you buy your house you should consider if this home really suits you. It is my goal for all of my buying clients that once they buy a house, they feel happy that the property was available for them when they were in the market to buy.
What should you offer? Given the sold data in the area, what is that number that you would not regret if your offer was accepted? Looking back, what maximum amount would you be comfortable paying? When you start thinking in those terms, you may have more clarity on your housing goals.
No matter what the market, there will be buyers who will want to buy and sellers who will want to sell. Only you can determine what is right for you. I am here to be a sounding board, and give advice based upon experience and data so you can make the best decision for yourself.
Whether you are buying, selling or just need expert advice without pressure, I am here for you.
– Deidre
375 Marlow Drive, Oakland – Open June 18 + 19, 2022
