Mixed Market Messages?
Since the last elections, the news are constantly inducing the sense of uncertainty and instability. The Feds lowering the interest rates on October 30th third time this year added to the fear of the economy slowing down.
For all the talk of the slowing economy and upcoming recession, the median sale price of a home in Silicon Valley reduced by FOUR percent comparing 2018 with 2019 year-to-date. That’s it! The home sellers, being cautious of the market downturn, are holding back and the number of new listings in October fell by 11 percent comparing with October of last year. The demand remains strong and the number of sales was down by only 2 percent. As a result, at the end of October there was almost 20% fewer homes available for sale here on Peninsula than a year ago.
The market is still a seller’s market – the inventory stayed below 2 months for most of the year. Half of the homes in October sold in 16 days or less. The challenge for sellers is to present their homes as the best value on the market to attract motivated buyers. Experienced, marketing-savvy local agent will bring a team of professionals to help you and will make this task much easier.
The other half of the homes are staying on the market longer driving the average time to sell to 31 days. Compare that with 21 days on the market earlier in the year back in May and 24 day in October of 2019.
The seller’s price expectations in a lot of cases are higher than what the market can bear. October median list price increased by about one percent over October of last year while the median sale price decreased by about six percent over the same time period.
We see an increased number of listings going through price reductions, sometimes multiple price reductions. Catching the sellers at the right moment and submitting a purchase offer may present a valuable opportunity for a determined buyer. With the best homes selling in a little over 2-week time, the buyers should move aggressively to investigate all available homes in and be ready to make buy/no-buy decision fast.
Elena & Michael Talis