Earlier this week, I received a survey from Homelight (https://www.homelight.com/ ). Homelight is a real estate company that, among other things, generates leads for agents and at one time I had a free account with them. I discontinued the account because the one lead I received was also given to several other agents. The homeowners apparently were barraged by Inquiries from many realtors, and the sellers later advised me not to be associated with Homelight anymore. Maybe this was a case of getting what I paid for?
I’ve got nothing against Homelight, and in fact I use appreciate their services through www.DisclosuresIO.com, a website that allows agents to share property disclosures seamlessly and even submit offers online. They’ve made real estate processes more efficient and addressed several market needs. In order to keep their ears to the ground Homelight sent out an interesting survey with 53 questions. One multi-part question in particular was very good, and I’ll share my answers with you.
Which of the following trends are you seeing in the market? Check all that apply.
Sellers are revisiting offers they previously declined from buyers? No. Not currently, but we may see that more by this time next year depending on what happens with the economy.
Home prices are still rising but at a slower pace? No. I think they are mostly flat in Marin.
Homes may still get multiple offers but with fewer total bids per home? Yes, however this is all dependent on where the seller is pricing the property. If it’s not at the market value they’ll be no offers at all.
Price reductions are more common? Definitely. I’ve even had sellers discuss overpricing to begin with to build in an expected price reduction. I’m not in favor of that strategy.
Buyers are making offers on fewer homes? Yes. Buyers are no longer throwing out offers, and getting outbid, every time a new house comes on the market.
Contingencies are coming back / buyers are less likely to waive them? Yes. Why waive contingencies if you don’t have to, unless you are coming in at a lower price, preferably with all cash, trying to create leverage.
Open houses are becoming less crowded? Yes and no. There are less buyers for sure but the same number of neighbors.
Increase in vacation / second home listings? No. This is not applicable to my real estate practice, although I do have a listing out in Bolinas which the next owner may use as a second home.
Inventory is rising? Not yet. Let’s see what late 2023 has in store for us though. I think spring and early summer will be good times for sellers here in the Bay Area. After July 4th all bets are off.
Days on market is increasing? Yes. I think this is quantifiable pretty much everywhere in Marin.
An increasing number of buyers are pushing back on inspection items? Sure. Buyers have more leverage in today’s market.
Most homes are not getting multiple bids? Yes. Multiple offers have always been a gift to sellers. Those gifts just aren’t being gifted lately. I’m hoping spring will see another season of multiple offers, but you never know.
I hope these answers give you a good idea of where I see the market today.