The real estate market continues to be very active, and increased inventories have led to more sales. Spring’s crazy seller’s market is beginning to normalize, though, just as we expected it would. Multiple-offer situations are declining because buyers are now finding more properties to choose from.
In addition, multiple-offer “fatigue” has settled in and is a major factor in the decline. We are seeing numerous buyers who are loath to invest their emotions on a home they feel will have too many bidders. As a result, numerous buying opportunities are being missed.
Even in a seller’s market, there are always buying opportunities. The smart buyer, with guidance from his sophisticated agent, will seek out properties that have been over-priced and thus likely to have had little activity. If they match a buyer’s requirements, these types of properties may be purchased without competing bidders and under market price.
Nevertheless, the greater San Francisco Bay Area is still among the hottest real estate regions in the country. Job growth, pent up demand, fear of rising interest rates, and skyrocketing rents are still driving the real estate landscape.
In the long run, the balance that is returning to the real estate scene is a good thing.