Every year around this time, I ask myself if this the end of the hottest market we’ve ever experienced… Then the market goes up again the following year!
I wonder if this subtle shift in the market is the beginning of a leveling off period. I don’t think the market is going to crash (barring any major event), but I think prices are going to start leveling off for a bit before they start climbing aggressively again.
I have noticed that Sellers’ List Prices have continued to rise as if the market was still “on fire” while Buyers’ willingness to make offers well above the List Price has diminished. There seems to be a gap between Sellers’ expectations and Buyers’ offers. In other words, Buyers are less willing to make offers and the offers they do make are not as high above the List Prices as they’ve been earlier in 2018.
Buyers, in general, are less willing to make trade-offs than they were earlier in 2018. In other words, they are becoming “pickier”. If a specific house doesn’t check off all the boxes on their wishlist, they are more likely to pass on the house or make a lower offer.
Buyers still have plenty of money to buy homes. It just doesn’t feel like the Buyers have a great sense of urgency right now. They are being patient and holding out for the perfect house. And, when they find it, they are willing to compete and pay a premium to win it. Why? Because it’s also the house that everyone else has been waiting for!
An interesting article
A slight chill coming for the Bay Area housing market?