Redfin agent Tom Hendershot in Oakland said that although competition is a bit less intense than it was a few months ago, homes there are regularly selling above their asking price. That trend can be a double-edged sword. Redfin agents in San Francisco report that it’s also turning some buyers off.
“Even those who can afford to pay escalating prices don’t want to overpay for a home and they don’t want to buy at the top of the market,” said Musiker. “Redfin agents are reporting that buyers are getting choosier about how high they are willing to go, and about which homes they’re willing to buy at those prices.”
This means that in San Francisco, where there’s so little inventory and so few sales, the median home price isn’t as meaningful as it is to take a deeper look into what property types are selling and for how much.
“The type of inventory that’s available and that’s in demand is greatly affecting prices. In the past few months, we’ve seen a lot less in the high-end, and more tenant-in-common (TIC)s come available,” said Colwell.
“These units are less expensive than single-family homes. So with more TICs being listed and sold, and fewer high-end single family homes, we’re seeing the median sale price fall,” he said, adding that doesn’t signal a slowdown or cooling pattern, just an adjustment.
Outside of the main Bay Area, Silicon Valley continues to see some real estate market turbulence. Mia Simon, a Redfin agent in Palo Alto said that buyers there are wary of overpaying and are being more choosy about which homes they bid on and how high they go.
“Some people are worried the market is topping out,” said Simon, adding there are still plenty of buyers — just pickier ones.