What are common trends you’re seeing in the Bay Area’s real estate market?

A:

Buyers are flocking to attractive homes well-located and priced to sell, while often competing in multiple offers.

When times get uncertain, there is always a flight to quality. With the inventory of buying options rising, focusing on the best quality is always smartest. Since June of 2022, there are more choices. Buying a quality home is always smarter than a bargain price for a bargain. There is one thing worse than buying a bargain — owning it.

Rental inflation is starting to happen in some markets, as some buyers have left the buying market and joined the rental market. We are hearing about quality rentals ending up in a bidding war. Thinking about a remodel? In May 2020, 1,000 board feet of lumber was trading at $1,711. Today, 1,000 board feet trades at $550. That is down 60% from the recent highs. That new kitchen project has become more accessible.

2022 is turning out to be the Great Rebalance.

A:

Across the Bay Area, the market has continued to slow down, and we are seeing buyer interest beginning to increase once again, due to less competition and an increase in inventory.

Listings that might have attracted 10 offers back in the spring are now receiving two or three, and buyers have a little more leverage now than they did previously.

Sellers and their agents now have to be more thoughtful than previously when putting homes on market, as pricing and presentation are more important than ever before.

Per the California Association of Realtors, the number of Marin County home sales dropped 21% from last year, while the median price went up 5%.

With inflation remaining high and rising interest rates, moving forward we expect to see moderate price growth and fewer sales.

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Send an email to Jordan Guinn at Realestate@sfchronicle.com