Are we starting to see a market shift?

San Carlos Hills home for saleThe residential real estate market in San Mateo County and the Silicon Valley has been strongly favoring sellers since 2012-2013.

Since then prices have risen dramatically, multiple offers have been the norm on almost every listing (except the extreme high end), and buyers outnumber available homes by a wide margin.

This last month, however, I've been wondering if a shift has begun, or is the market just taking a breath as summer arrives?

It's too early to tell, but these are some interesting numbers for single family homes that I pulled for my newsletter readers.

Notice how inventory in every city has grown since November. Notice how many homes have experienced price decreases.

 

Chart-active listings, price reductions

Are we starting to see a shift in the residential market in San Mateo County and the Silicon Valley? Time will tell.

--- Come for a visit; Stay for a lifetime!

Lottie Kendall, Realtor®

Pacific Union International

CA DRE#10215160; 650-465-4547

Lottie@LottieKendall.com

www.LottieKendall.com

Peninsula Living Business Page

www.SFCondosForMe.com

 

 

Comment balloon 19 commentsLottie Kendall • June 22 2016 10:19AM

Comments

Are those agents in Redwood City and Palo Alto buying their listings ?

Posted by Michael J. Perry, Lancaster, PA Relo Specialist (KW Elite ) about 2 years ago

I just heard from an agent in my area that a "correction" is coming in the next year or two. It's all like another language to me.  LOL

Posted by Sharon Tara, New Hampshire Home Stager (Sharon Tara Transformations) about 2 years ago

Hi Lottie -- while we are still experiencing a sellers market in my market, there is a somewhat subtle shift occuring too.  Increased inventory in certain pockets, a rise in the number of price reductions(and sometimes quite quickly) and some homes even selling less than list price(imagine, right?).   

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) about 2 years ago

I don't know, Michael J. Perry, but when an opportunity arises, I do!

Sharon Tara - like most anything, the pendulum swings from one extreme to another; trying to determine where we are in a cycle is always interesting.

Hi Michael Jacobs - in your area, too, huh? Anecdotally I haven't noticed a shift in the condo/townhouse market, but I plan to take a closer look. I'll report what I see.

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Pacific Union International) about 2 years ago

That is interesting. Could be a result of sellers trying to cash in on the rising prices and then over-pricing their homes, which is often the case here.

Posted by Jane Peters, Connecting you to the L.A. real estate market (Home Jane Realty) about 2 years ago

We're seeing some of that, Jane Peters, but I don't think that explains the number of reductions we're seeing. I'll be tracking this all summer and see what the trend might be.

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Pacific Union International) about 2 years ago

Lottie

There a number of markets that experiencing a shift . . . . and we may see the shift until after the elections.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) about 2 years ago

I hadn't figured how elections might impact our local housing market, Lou Ludwig I know the stock market hates uncertainty, but housing? 

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Pacific Union International) about 2 years ago

Lottie - This is interesting. I will have to check the stats in my area to see if we are experiencing the same thing. After all, home prices cannot continue to increase forever can they?

Posted by Troy Erickson, Your Chandler, Ahwatukee, and East Valley Realtor (Diverse Solutions Realty www.ChandlerRealEstate.weebly.com) about 2 years ago

Home buyers and sellers in the area will appreciate this information.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) about 2 years ago

Lottie Kendall - I'm with you, is the market shifting, or is this what happens in a Presidential election year and the DJIA in a limited trading range.  Uncertain times!

Posted by Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com, Tahoe Real Estate Agent Helping Buyers and Sellers (Coldwell Banker, Tahoe City, CA (530) 414-1260) about 2 years ago

Our economic situation is certainly different than you experience in Silicon Valley but one certain across all markets; when inventory increases, prices see pressure especially if the inventory is good. The word has been out for quite awhile that inventory is low and prices are on the rise so smart sellers have invested in their homes and put them out there to grab their gains. We are also seeing cash come out of the market to invest in 2nd/3rd homes since those prices have not seemed to increase as quickly as our Atlanta residential market. Good bargains around the lakes and coastal islands of SC.

Posted by Maryanne Winchester about 2 years ago

Good morning, Troy Erickson - I'll be checking stats more closely in the months to come. It will be interesting to see if the condo/townhouse market is seeing the same.

Gita Bantwal - part of the value I bring clients/customers is a sense of what's going on in the marketplace. Now, more than ever, it's important for sellers not to overprice.

Hi Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com - our uncertain times just got more uncertain today!

 

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Pacific Union International) about 2 years ago

Hello Maryanne Winchester - I bet those investors who have recently purchased 2nd homes in your area (or any area) are glad they pulled some money out of the stock markets!

 

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Pacific Union International) about 2 years ago

Lottie

One of the biggest shift we are seeing an increase of listing coming onto the market.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) about 2 years ago

I am feeling a shift here in Sarasota. Some very desirable homes are taking longer to sell...and having to drop prices. Usually in Sept/Oct there is an increase in listings in the area due to incoming snowbirds...buyers are waiting for more choices in homes, and I have several sellers planning to list in the fall. It will be an interesting year!!

Posted by Carolyn Francis about 2 years ago

Is an increase in listings at this time of year typical for your area, Lou Ludwig ?

Hello Carolyn Francis - 2016 is shaping up to be a very interesting real estate year in many areas. Thanks for the update about the Sarasota area.

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Pacific Union International) about 2 years ago

I'm noticing a lot of price reductions in my area lately. I think a shift is in the immediate future.

Posted by Patricia Feager, Selling Homes Changing Lives (DFW FINE PROPERTIES) about 2 years ago

Interesting; others have weighed in, saying similar, Patricia Feager 

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Pacific Union International) about 2 years ago

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