The housing market in the Bay Area is getting trickier by the day. Single family home sales went up a little from its identical period in 2015. Many prospective home buyers, unlike the gobbling up demand of 2015, preferred to wait and watch. Sellers are pushed to negotiate. A break in price is now a distinct possibility.
Wait and watch
According to Timoth Ambrose of Bay East Association of Realtors, price adjustments are a thing now. Buyers have started to ponder whether it makes more sense to wait. The problem is that the market is a complex one. Techies are the reason for upward home prices in niche markets like Rockridge in Oakland and Palo Alto. It is to be understood that the market overall slows down in the latter part of summer as children begins to attend school and families cancel their house hunting.
If one goes by the numbers provided by CoreLogic, the source of this real estate information, home sales spread across the nine counties in the region went up only 0.3 percent in August. A minute examination of each county reveals a choppy pattern. The Contra Consta Countu exhibited a 2.9 percent up in sales compared to 2015 while Santa Clara County showed a drop of about 6.8 percent.
Andrew LePage, who works as a research analyst in the company, said that home sales went up a little every year in Bay Area. The question, he asks, is why it is so-especially in an economy where the job market is much better and interest rates continue to remain low. The reason is affordability and also constraints in housing supply. There are sufficient numbers of houses for buyers- but not many people can afford to buy one.
Prices continued to be high, while gains in August were only in single digits. The average price of a residential house was about $734,000 in the Alameda County, a rise of only 0.1 percent. Average prices in Santa Clara County and San Mateo County were $925,000 and $1.2 million respectively.
Many experts agree that the property in Silicon Valley is extremely unpredictable. According to Wendy Kandasamy, an agent of Pacific Union, the market is dynamic and it is a hard to know when a property will finally change hands. Houses in the lower price brackets have seen buyers backing off and sellers forced to renegotiate.