What's going on with the Local Real Estate Market??- Written by Mike Kenyon

The land grab for tangible assets during these times has continued to increase and Bay Area real estate prices again have again become a beneficiary of this trend we are seeing across all industries. Traditionally in the local real estate market we see a small slow-down in August and the first part of September and then often times the market heats up in October again which is what we are seeing right now. For single family, the local market is absolutely insane and has never been hotter, especially in the entry-level single family market. Last week I had a “fixer” for sale and it received over 20 offers and sold for 26% over asking price and about $200k more than the nearby comps and this is happening everywhere the past few weeks.?The condo/townhome market did take a hit during Covid but prices are up again and this market has comeback very strong. The all-time high for condo/townhome prices locally was in the Spring of 2018. While we are not quite back to those historic prices yet we are getting closer and closer every week. I would not be surprised if we surpassed those highs by year end. With single family becoming more and more out of touch this should up the pressure on condos/townhomes in the upcoming months.?So where is this market going? While I haven’t been able to find a crystal ball on Amazon that has helped much, I predict that prices will continue to go up until at least late Spring of 2022. There is too much buyer demand right now and we are going into a time of year where inventory starts dropping which will keep prices and activity very strong in the immediate future. May and June is when we see inventory really pick up normally so if there is any sort of market slow down I expect it to be not before next summer.?So how does affect those looking to buy or sell right now. While I can’t predict the future, I believe that prices will continue to go up until at least late Spring in 2022. I personally believe that when prices do soften a bit next Summer they still will still be higher than prices today so if you are looking to buy, it is best to suck it up and jump in the market since I don’t anticipate it getting easier before next Summer. History shows us that waiting is not a good strategy. If you are buying right now it is essential to have a top end real estate agent who is hands on and understands the market. I believe it’s just too difficult of a market to be trying to purchase with an agent who isn’t 100% on this market and a top producer.?If you are looking to sell, I anticipate that you have a bit of a window for this good selling window but often times it does take a number of months to create a selling plan and executing it so I would still be working on your selling plans right now and try to get your home on the market by next April at the very latest.?Lastly, I think especially in real estate it’s really important to create a personalized plan which best suits your situation whether you are looking to buy, sell or do both. If you or anyone you know is interested in selling or buying a home and want to have an initial conversation about where to go next, I would be happy to discuss your situation with you and create a plan for you that we can achieve together. Just reach out and we can schedule a time to talk.?Happy Fall!

-Written by Mike Kenyon