Last week, a reporter from the New York Times contacted me to ask if I had any buyer clients waiting for the election to be over before making their purchases. I have three active buyers, and none are trying to time the market, so unfortunately, I could not connect her to buyers for her story but I told her I do not recommend that buyers wait or try to time the market, and she asked me why.
Historically, in election years, in the few months before the election and out of uncertainty about the future, some buyers will wait until after the election to purchase a new home. This means there are fewer buyers competing for current inventory, so I do not recommend waiting - why not take advantage when there is less competition? Also of note, some buyer hesitation we may be experiencing right now may have less to do with the election and more with people waiting to see if interest rates are reduced again. Hearing that we may get additional rate cuts makes some buyers wonder if waiting could be financially beneficial.
But if rates are cut, there could be more competition. It is difficult to time the market. In my experience, buying with less competition could be more financially beneficial than waiting for a small rate cut that may or may not happen soon. It is more important to buy the right home, a place you like that fits your needs, than wait for the perfect timing. "Perfect" rarely exists, and a buyer can refinance later. I have seen some buyers wait to refinance for a couple of years when there are more meaningful reductions in interest rates.
But this topic led me into a deep dive into what I currently see in the market: buyers are not buying anything they are not compelled to buy. Sure, there are a few exceptions, such as people with immediate housing needs, but generally, people pass if a house does not feel right. Over the last ten days, I have had a set of buyers who were taken with a property; they viewed it three times, once with me for over an hour. It had the size they needed, and they liked the neighborhood and the layout. We reviewed the disclosures and discussed the required repairs and associated costs, and in the end, they decided to pass. On offer day, the listing agent called me and informed me that only one offer had come in, for a price lower than anticipated. Because I had been in constant communication with the listing agent, she provided my clients a window of opportunity to win the property at a lower price than the comparable sales in the area. While my clients appreciated the chance, they still passed because of the expensive repairs needed. More buyers are searching for properties with minimal maintenance now than in the last ten years, which circles back to what I am seeing: buyers are not buying anything they are not compelled to buy.
As we head into the fall season, I am honored to be your trusted advisor. Thanks for calling on me for all of your real estate needs, both locally and for out-of-the-area referrals. Every year, I help pair clients and their loved ones moving outside my area of expertise with top Realtors who are the best matches. Do not hesitate to reach out if you have housing questions, need service provider referrals, or need a realtor anywhere in the country.
While I work in Oakland, Berkeley, Piedmont, San Leandro, and the adjacent cities, today I found out that my production from last year ranked me as the number 10 agent in Oakland by Real Trends. What an honor, and many thanks to you who continue to trust and support my business.
Have an excellent rest of October!
