Properties are staying on the market for closer to 30-60 days, when previously within this same market, they were selling much quicker. One of the reasons could be that we have peaked in our market where properties are commanding a higher price nationally. Here in California, property values have gone through the roof to the point that the medium price range of a home in California has reached over $800,000.
Why are properties sitting a little bit longer? Well, the pricing has increased significantly, which causes some issues for buyers. They’re either have to come up with the cash or have to go back to the negotiating table. If you have a good solid team working together, it can be managed. We’ve also seen some properties that sold early, but the escrow couldn’t close, so they’re back on the market.
We see a slight increase in inventory, and that has people thinking if inventory is going up, it may stabilize the market, and we may be nearing a correction. People may become too nervous to act. It could be what’s causing some properties to stay on the market longer than we’re used to seeing.
The bottom line is that the market is cooling off slightly and causing people not to take as much action, don’t mistake this as the market is cold, but it isn’t allowing buyers to lock in these low-interest rates due to being priced out.
Contributor: @PabloFPomes
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