Bay Area Market Update!

You have asked an excellent question. I know it certainly feels like the market has slowed down a bit. But the reality is… we are actually entering a more balanced market where housing inventory is more available and buyers no longer have to experience a heart attack to buy a home in the Bay Area! There are several factors that contributed to the slight change in market. Mortgage interest rate has gone up by 1% over last year, the recent tax reform has lowered the deductibility in state income tax, and it is harder for families to send money out of China, which affected the availability of down payment from many Chinese buyers. While the average sales price in San Mateo County in the third quarter of this year has experienced a 4% decline compared to the 2nd quarter of this year, we are actually experiencing an overall 8.5% growth from last year. The bay area is a still a very robust economy overall. Unemployment rate is at a historical low point at less than 3% and there is still a housing imbalance because for every 17 jobs being created in the Bay Area, there is only 1 new housing unit is being built. The tech industries are doing well and there’s a lot of available land to build. I believe we are entering a healthy market, not a crazy market like the last 4 years. If you are thinking about selling your home in the near future, here are three tips: #1. Price your home at market. I am not seeing as many bidding wars on a listing now so price a property too low to get multiple offers may backfire if a home stays on the market longer than expected. The odds of getting over asking price offer will drastically reduce if a home stays on the market for longer than 30 days. #2. Take care of the major repairs, such as any foundation issue, a leaky roof, or deteriorated fences. Home buyers have more choices now and can be deterred if they have to spend money on major repairs. #3 Hire a local real estate agent who has a proven track record in selling homes in your area. Their hyper local knowledge will put potential buyers at ease when they can clearly describe the different neighborhoods in your city, articulate school choices, and the exciting developments around town. I have been a long time resident of Redwood City and having been selling real estate in your neighborhood over the last 10 years. If you have any thought of selling now or in the future, I would love the opportunity to meet with you!

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Want to learn more about buying in the Bay Area contact me using any of the options below? Download my FREE guide to purchasing a home here >> www.heatherlinhomes.com/resources/buyers-guide

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