Despite a huge spike in mortgage interest rates buyers are still actively shopping for their next homes. And even though inventory remains sparse, current rates are pressuring some sellers to lower their prices to make their homes more affordable. Recent national data found that 5.9% of homes for sale in August experienced price cuts, and September saw even more sellers (6.5%) posting reduced prices.
We recently rolled up to Lake Tahoe for an economic summit with our Compass family and found a hot market where median sales prices are up, inventory is high, and vacation homes are flying off the shelves!
According to data from the California Association of Realtors, the Bay Area’s year-over-year house price appreciation rate went green for the first time in more than a year in August. This followed a dip of nearly 20% caused by a post-pandemic market correction.
You don’t have to take our word for it. Just take a look at the numbers. Homes that go through a price reduction spend nearly two months longer on the market and sell for around 10% less than homes without price reductions. That’s a significant difference, and another reminder to price your home to sell, not to shock.
Inventory remains tight in San Mateo County, with median home prices and average time on the market going stagnant year over year. This could be a sign that the market is finally leveling out. It could also be a sign that summertime is traditionally slow for sales. Condos were only a slightly different story in July, with inventory down, prices up, and properties spending eight more days on the market than one year ago.
