The Heat of the Market

Home Sweet Home

Summer is over and the market is still hot, hot, hot.  However, it isn’t as hot as it has been over the past 6 months.  But here is the thing: our market is hyperlocal and it changes week by week.  How can this be?

In a market with low inventory all it takes is for a handful of the same houses to come on the market at the same time.  Late August the inventory in Berkeley and Albany was low.  Yes, it was a seasonal low, but there were still enough buyers to make these homes receive multiple offers and sell for over asking.  The week after labor day that all changed: 18 2 bedroom, 1 bath homes came on the market in Berkeley alone, an uptick in inventory like we haven’t seen all year.

What happened was that for each house that was previously receiving 6-10 offers, there were now enough houses for all of the buyers.  As a result, some homes in El Cerrito, Kensington and Berkeley did not receive offers on the anticipated offer date.

The past two weeks saw daily emails from agents who had sent out emails saying “No Offers,” “Offers as they come,” and “Transparent Pricing.”

In looking at the data many of these homes are now in contract, but only time will tell whether these homes sold for the anticipated price.  This is one of the dangers of a market with low inventory.  If you are considering selling then be sure to consult with a hyperlocal agent who knows your area and understands the inventory trends.  This week?  Inventory is back to normal {low} levels.