Inventory Is Up, Bidding Wars Are Down!


Well this is good news!......Due to an increase in inventory, competition is less fierce and it appears that California buyers are much more likely to get an acceptance on the first offer they submit. This is a drastic change from the last few years and is a welcome relief to those trying to find a home in the Bay Area. Previously, buyers would submit offers over asking price with no contingencies and very quick closes. Cash transactions usually won out over offers that needed financing and sellers were definitely in the driver's seat.

Fortunately, the Monterey Peninsula was somewhat isolated from the Bay Area frenzy of the last few years. Multiple offers were unusual and homes were selling around 97% of list price. Cash purchases were and do remain fairly common due to our vacation and second home market but 30 day escrows are standard and inspection contingencies are expected.

Here are a couple Bay Area stats:

San Jose, Calif:

  • First-offers success rate 63.2%

  • Year-over-year change 38.2 pts

San Francisco, Calif:

  • First-offer succes rate: 56.1%

  • Year-over-year change - 1.9pts

Source:

“West Coast Buyers Are Now More Likely to Win the First Home They Bid On,” Redfin (April 15, 2019)

#realestatemarket #homepurchase #bayarea #housinginventory #contingencies

Coldwell Banker Realty

126 Clock Tower Place, #100, Carmel, CA 93923

831-275-0423

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