Have you ever heard the terms “buyer’s market” or “seller’s market” without enough context to understand what that actually means? If you’re trying to find a home or sell one in Silicon Valley, it’s important to understand what type of market you’re dealing with so that you and your realtor can create a game plan that will work for your benefit.
Today, we’ll be discussing the signs of a “buyer’s market,” also referred to as a “cold market.” As the name suggests, if you’re trying to find a home in Silicon Valley during a “buyer’s market” the odds are stacked in your favor to find the home of your dreams for the best price possible. Keep an eye out for these signs, and get started with Jamie Lennon today.
This simply means that there are more houses actively listed for sale. This contributes to a buyer’s market because there are more homes available for potential buyers to choose from.
Lower Closed Sale Numbers
More homes on the market means fewer homes being closed on because there aren’t enough buyers looking. This creates a buyers market because not only are there more homes available, but fewer of them are being closed on, which means that the number of available homes stays high.
Decline in Median Sale Prices
With more homes on the market, sellers create more competition by lowering the listing price of their homes. During a buyer’s market, it’s common to see listing prices drop several times over the duration of the listing period. It’s also common for the closing price to be negotiated even lower than the listing price. This creates an overall decline in the average sale prices for homes.
Real Estate Ads Are More Prevalent
If you’re trying to find a home in Silicon Valley during a buyer’s market, you’ll notice real estate ads popping up everywhere. Of course, you’ll see ads for specific properties you’ve looked at online because this is a popular marketing tactic to keep that home on your radar.
Beyond that though, it’s common to see more real estate ads compared to other months during a buyer’s market because it’s another way listing agents and sellers compete to close on their property when the buyer pool is limited.
Increase in Days on the Market
If you’ve noticed that a lot of homes have been on the market for weeks or months, it’s a sign that the real estate market is leaning in favor of buyers. Be sure to look for this as a pattern though, because one home that’s been on the market for a long time could be an indication of issues with the property itself.
Find a Home in Silicon Valley No Matter What the Market Looks Like
There are countless variables that contribute to the temperature of the real estate market. Don’t let any of these factors deter you from searching for the home of your dreams! Contact Jamie Lennon today to schedule a consultation to start your search with a realtor who’s dedicated to your needs.