Toward the end of 2011, and during the first few weeks of 2012, I have described the San Carlos market as one in transition. That transition being one of moving from a buyer’s to a seller’s market. While this may very well be true, it is not telling the enitre story of what is really happening in our market. Many of us thought the market would be improved this year, but I do not think anyone involved in San Carlos real estate could have predicted what is currently happening. What is becoming decisively evident, is that our market is not one under a methodical transition, rather it is one that is currently being jolted back toward sellers.
By The Numbers
It’s a harsh reality for many buyers, some of which are now kicking themselves for waiting so long to enter the market. Almost everything that I have seen in recent weeks is a multiple offer situation for new homes coming on the market. I had one agent, who I know and trust, tell me yesterday that he cannot remember a transition that has been so decisive and in such a short amount of time. If you do not want to take my word for it, take a look at the numbers:
* We currently have 27 Active homes on the market, and by the end of today that number will be 25. This is exactly half of the amount of homes we normally have on the market at this time.
* Our Pending homes currently outnumber our Active homes. Currently, there are 32 homes pending in San Carlos.
* Current amount of Active homes between $850,000 and 1,400,000 in White Oaks and Howard Park: 0.
Breaking It Down
It is easy to run on emotion. I have spoken to a few buyers lately who are upset with themselves for not reacting sooner and are now reacting more on emotion than perhaps considering the bigger picture. Our market goes through stretches where it is crazy, but it will settle back down. Right now we are being thrown somewhat harshly back toward a seller’s market and the residual effects are forcing many new buyers into situations they do not have familiarity with, such as multiple offers, multiple counter offers and strategies that have not been used around in here in some time.
My advice for buyers: understand that the market has changed substantially and quickly. Adjust your strategy accordingly, have a definitive plan, use data points, but temper enthusiasm with a healthy dose of the much bigger picture.
* Tomorrow’s post will focus on the causes for the market shift.