Are we in In a Buyer’s market or a seller’s market?
Well, let me explain each
A buyer’s market is When there is a surplus of homes and low demand for them. Prices tend to go down in these conditions because there’s less competition. Also, homes are likely to stay on the market for longer, putting pressure on sellers to make concessions during the negotiation process.
A seller’s market on the other hand is
When the supply of homes is not enough to meet the demand from buyers. Home prices tend to go up in these conditions, as buyers compete for the few options that are available, and sellers are less likely to make concessions because they may receive multiple offers. Also, homes tend to stay on the market for a shorter amount of time.
Currently, in San Francisco and parts of the Bay Area, we are still seeing low levels of inventory, but low buyer demand which puts us in a category we’ve never seen before. Rising mortgage interest rates are the main cause of this change in market conditions.
I feel in a few more months we will start to see a true buyers’ market as more and more sellers begin to realize that they no longer have the upper hand and that if they need to sell their home, they will need to price it at current market conditions.
Stay tuned for more current housing market news.