In the last two weeks we have experienced a sharp increase in inventory here in Alameda. The cooling affect from San Francisco housing market has rippled it’s way across the bay and everyone is waking up to the fact that the market has shifted.
Home owners that have been on the fence waiting for the market to peak are now taking advantage of the last selling cycle before winter and rising interest rates. Later this year, rising interest rates will have a subtle affect on buyers since they will have to reduce their target price.
While no one I’ve spoken to is expecting a correction, we are expecting to return to a normal market, with longer days on market, some price reductions, and homes selling for fewer dollars at or above the asking price. This is all good news for buyers while some sellers may be disappointed that the market isn’t what it used to be.
– Guy Blume