Number Talk: Market Dynamics

It feels like the market is heating up again. I recently worked with a fellow agent on a single-family listing in the Cuesta Park neighborhood of Mountain View. The home listed at $1.87M. Yesterday, on the offer date, we had 21 bids with the highest at $2.22M. As you’d expect, the seller accepted without contingencies. but we were all shocked by the competition.

Ever since September 2018, the market has seemed to slow, so why the sudden jump with this property? Well, there are a couple of factors at play here. First, if you look at the graph below, supply is very low compared to one year ago. When there is an extreme imbalance of supply and demand, you naturally see price hikes.

The second factor is seasonality. Late winter/early spring is generally a great time for sellers, as buyers start to look for houses after the holidays and before the spring break. And with inventory so low right now, it’s like a perfect storm!

Please contact us if you want to know the inventory level in your neighborhood or a particular city that piques your interest.

– The Geek