The U.S. housing market recovered in high gear after the last bust-and-boom cycle. Within the past few years, we’ve seen bidding wars, inventory shortages, and astronomical sold prices. Many new buyers entering the market have asked, “when is this going to end?”. Well, lately we’ve been seeing that the page may be finally turning. The US Real Estate market is slowly hinting that the progressive madness is cooling off. The signs are finally becoming clear that we may be shifting toward a buyer’s market. That being said, prices are not exactly going to be plummeting, but there is a hope that the median list prices are slowly shifting down.
Last year, we saw home prices increase 10% than the previous year. Based on data collected by Realtor.com, we saw a 7% year over year increase in August. Comparing this to the previous year of 10% may be a sign of a shift coming. So, what does this mean for buyers? Well, sellers that were once hoping to sell their properties for recording breaking numbers may be facing a new chapter to the housing market. Buyers can now count on more homes coming to the market, which means prices will be affected. As inventory begins to increase, homeowners will have no choice but compete with surrounding neighbors. This may mean list price reductions and more competition to sell your home.
Some professionals believe the real estate market may be slowing down altogether. The main reason behind this is the fact that mortgage interest rates are beginning to rise. Unfortunately, the rise affects new buyers that are not willing to pay the high interest rates and market capped homes. You may be thinking, “we’re heading for another housing bubble”. Well, most experts aren’t worried because of a few reasons. First and foremost, to acquire a loan, there is a new intensive background check that must be performed for preapproval. Also, despise more inventory entering the market, the demand for homes in the Santa Clara County continues to be record-breaking.
So, what does this mean for sellers? Well, certain pockets within the Santa Clara County are still seeing properties sell within 10 days or less. The fierce competition for certain zip codes is as strong as ever. That being said, are you aware of your current market value? With the current dips, your property may still have a strong value that may be affected in the year to come. Homeowners should be fully aware of what is occurring in their neighborhood. If you’re on the fence of selling, this is a very important time for you to be informed by local real estate professionals such as Arthur & I to provide a detailed evaluation report of your investment. If any individual is claiming they are predicting the market for the months to come, you should take their advice by the grain of salt.
“A prediction about the direction of the stock market tells you nothing about where stocks are headed, but a whole lot about the person doing the predicting.”
– Warren Buffet
For more information on how you can achieve a free property evaluation report, contact us directly through the forms below, or give us a call at (408) 703-5375. Arthur and I would love to provide you with the valuable information you need to make the right decision for your investment.