It'll be short-lived, but here's what's happening with the Pacifica, CA Real Estate market...
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It feels like we're in a Stalemate Market. Yeah, I made that term up, but it's what I've been seeing over the past couple of weeks. A real estate game of chicken between buyers and sellers, ending in both sides walking away due to unmatched expectations. As a result, inventory levels are holding, and days on market are building up.
👉 Good news for buyers:
Some Seller's are motivated NOW and listening to the LIVE TIMING of the market! This is good news for buyers looking for a "deal"...
Of course, the "deals" will evaporate once inventory starts moving again...
Where's the breakdown?
It's not due to a lack of offers in the market; it's more of an issue of offers coming up short of sellers' expectations - especially if they were hoping to match last summer's lower inventory/lower rate environment.
Downward Adjusted Offers.
The most recent rate hike took another bite out of buyers' purchasing power, causing downward adjusted offer prices to accommodate the new affordability factor (PITI). Also, a new factor digging into buyer affordability is the spike in insurance costs! Recent flood zone quotes are coming in at $3k+ a year (vs. $1,200-ish in recent years).
The Lagging Comps.
Sellers aren't seeing evidence of lower prices in the comps yet since most of that data lies in the "in contract", or "pending" sales that won't close out for another 10-21 days...
The Stalemate.
These buyer & seller conditions are creating an information gap (or offer gaps), causing some stalemates.
So What Now?
Reasonable sellers will digest the comps as they trickle out and, if they're motivated, will adjust their pricing expectations to buyers' new tolerance levels.
👉 Good news for buyers:
Some Seller's are motivated NOW and listening to the LIVE TIMING of the market! This is good news for buyers looking for a "deal"...
Of course, the "deals" will evaporate once inventory starts moving again...
Wild card: more rate adjustments in either direction will jumble everything up 😉
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👉 For a deeper dive into the details, or if you have any other specific real estate related questions call me or text me anytime.
CONTACT ME
(650) 898-8869 | call or text
michael@pacificarealtor.com
Disclaimer
Michael Jimenez, Pacifica Realtor, DRE #01961866 provides access to information on this blog/website page as a public service for educational purposes only. Although reasonable efforts have been made to ensure that all information made available is current, complete and accurate, Michael Jimenez does not warrant or represent that this information is current, complete and accurate. All information is subject to change on a regular basis, without notice. Michael Jimenez assumes no responsibility for any errors in the information provided, nor assumes any liability for any damages incurred as a consequence, directly or indirectly, of the use and application of any of the contents of the blog/website page. The inclusion of, or linking to, other website URLs does not imply our endorsement of, nor responsibility for, those web sites, but has been done as a convenience to our blog/website visitors. By using this site you understand that there is no attorney-client relationship between you and the site publisher.