From the Desk of Pete Sabine & Leslie Whitney
- Real Estate Market insights and expertise
A Housing Correction May Be Coming,
Not a Crash…
Almost everyone is wondering if a housing crash is on the horizon. However, most experts think the real estate market is headed for a softer landing. It's true that the market has slowed over the last few weeks. In fact, 12% of homes for sale had a price drop in the four weeks ending April 3 based on recent data.
That's up from 9% as compared to 2021. Rising mortgage rates are also putting some would-be homebuyers' plans on the backburner. But as the real estate market cools, its foundation of record-high home equity and housing prices is probably going to keep the market relatively healthy.
After a survey of a wide number of Bay Area Realtors, it is clear that the Bay Area real estate market has begun its shift cooler, not surprising with interest rates up a shocking 69% in 2022, the volatility of stock markets, and the increase in media coverage of negative economic/market issues.
Though not every Bay Area region has seen the same trends, and the trends are preliminary and not universal, these reports were repeated over and over: less traffic at many open houses, fewer offers on many new listings, some buyers dropping out or becoming much more selective, and some sellers moving their listing dates earlier.
The San Francisco Bay Area Real Estate Trend Report reveals the incredibly heated market sales statistics through April, 2022. The preliminary shifts in market psychology and dynamics that are generally not yet reflected in the closed-sales statistics.
Pete Sabine & Leslie Whitney
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