Warm Housing Market Confusing to Buyers and Sellers

While the current real estate market here on the San Francisco Peninsula can not be considered nearly as hot as it was for the past few years, it is not as cold as many had feared either. As we move from the seasonally slow winter season, as a whole we are seeing a pick up in activity. Listings that had seen little interest in the holiday months have been sold or gone pending and slowly more inventory is coming online.

Unlike many other markets here on the West Coast like Orange County or Las Vegas, our inventory figures are not making headlines and at all time highs. As a matter of fact, Realtors are looking for more properties to sell. For Buyer's Agents it's still been difficult because although the days of multiple offers and well over asking price bids seem to now be in the past, the new challenge is that there isn't enough out there for our buyers to look at.

As for Listing Agents and Sellers, the listing prices seem to be remaining healthy and they understand that though it may take a bit longer to sell, they can still get or very nearly get their price if they are patient. As the market keeps on improving through the Spring to the busier Summer months, this patience will likely be rewarded.

The notion that some have about the imminent bursting of the real estate bubble seem at least for the foreseeable future to be unfounded. We are still getting the daily phone calls inquiring about our listed properties and receiving solid traffic at our weekend open houses. However, there does seem to be a little more song and dance since rising interest rate fears seem to have subsided for the time being. Buyers believe that since they have already absorbed that additional 50 basis points or so since last summer and that chances are they may only be looking at 25 more if they waited, they can afford to hold out for THE property (or at least closer to it), instead of any property as had been happening up through last summer.

But with real estate for the long term, the probability is overwhelmingly in our favor that regardless of what happens in the near term, that we will end up ahead. And most importantly and a point not to be forgotten, the house you are looking to purchase will be your home and taking a page from Mastercard: Mortgage Payment - $xyz, Property Tax - $abc, Memories you will make with your family in your new home - $Priceless!!

So the upshot is that while there certainly is a measure of risk in buying into this market (as there is in any investment, financial or otherwise), just don't let this risk lead you. It is a factor and should be a factor, but remember that it is merely one data point that should be considered along side everything else. And sellers, prices are still strong and buyers are just waiting for their dream home or even a home they can build their dreams in to come on the market, and they're waiting for you.