More homes on the market and rising interest rates have changed the home buying experience in Pleasanton. However, real estate experts are reluctant to announce that we are in a buyer’s market.
“I never use terms like buyer’s market or seller’s market because it just depends on your goals and your timeframe,” said Jordan Levine, vice president and chief economist for the California Association of Realtors. “When people ask me if now is a good time to buy, I always turn around and ask more questions: How long will you own the house? Do you like the house? Can you afford the house? ?”
Levine said there are conflicting economic forces influencing buyer behavior: “On the one hand, we’re in a time of heightened economic uncertainty, this could be a strike against buying a home. D “on the other hand, we have a market that is much less more competitive than before and that is an advantage for someone who wants to buy a house.”
He continued: “Mortgage interest rates are higher and that’s negative, but rates are likely to go up in the future and that’s a vote to buy now. These are all considerations to you want to think.”
Asked about the power of homebuyers in Pleasanton, Sheila Cunha, 2022 president of the Bay East Association of Realtors, said: “It depends on the house. If the house is completely renovated and repaired, I don’t think they have a whole lot of control because people want to move into a house ready for them, and in Pleasanton you don’t see a lot of repairmen.”
The median selling price of a single-family home in Pleasanton fell from more than $2 million in March to $1.6 million in September. Selling prices were about $20,000 higher than September 2021.
Cunha observed that while this is not necessarily a buyers’ market, sellers need to be careful of changing conditions.
“I think a seller needs to be more realistic about the price because sellers have seen appreciation since the pandemic of over 40% or more in some areas,” Cunha said. “They’ve had a lot of appreciation but that’s not going to continue, they have to be very realistic on pricing.”
Cunha’s advice to sellers is to price their home attractively, so they can get the most out of it and you still want to showcase it. Even if the vendors have their own furniture, get a professional to advise you what to do. “
Major shifts in supply and demand have driven prices down. On the supply side, there were 22 homes for sale in Pleasanton in September 2021, down from 80 in September 2022.
The dramatic increase in supply changes more than selling prices. “In places like the Bay Area, where inventory has been so incredibly tight, buyers will have a different experience just because there are more homes to look at and they’re not going as fast as they used to. “, said Levine. .
“People who didn’t have all the cash or 20% down payment have had a tough time over the past two years and now those people have options to get their foot on the property ladder and that’ is a big change,” Levine added.
On the demand side of the local real estate economy, concerns about rising interest rates and prices that are still disconnected for many buyers have both had a chilling effect. A home was on the market for an average of 14 days in September 2021, compared to 30 days in September 2022.
“Buyers are going to have a much longer conversation when buying than they’re used to. ‘How much money am I going to have to pay?’ was really the only question a buyer could ask for the past two years and now I think they can start trading again. We’ve heard of sellers cutting prices, helping with down payments or closing costs,” Levine said.
Cunha agreed, “Asking a seller for help with closing costs is probably a reality that hasn’t happened in the past 10 years, and if inspections have been done and things need fixing , a buyer can request these repairs.”
Both Cunha and Levine acknowledged that interest rates that have doubled in recent months are a priority for homebuyers, but shouldn’t be the only factor when shopping from home.
Cunha said, “If I’m a buyer right now, I’m looking for a house that I really want to buy because I’m going to marry the house, not the interest rate. I know I can approach the interest rates more late if they calm you down.”
Levin said: “From a long-term perspective, it makes perfect sense to buy a home now because you don’t have to compete with so many other buyers and long-term appreciation. is untainted by the current challenges we face. If you are buying a home to live in, raise your kids, etc., now is a great time to buy. If rates go down in the future, you can always refinance and lower your payment even further.
Editor’s note: David Stark is director of public affairs and communications for the Pleasanton-based Bay East Association of Realtors.