SAN FRANCISCO (KRON) — The red-hot housing market is beginning to cool down, according to a Redfin report released this week.
During the pandemic, there has been immense competition for buyers looking for their new home.
In some cases, homes have sold for over $1 million over asking price. In the Bay Area, this was the case for a house in Mountain View which sold for about $5.5 million within days of posting.
There was also a house in Berkeley that sold for $1 million over asking, after receiving a whopping 29 offers.
But Redfin says the market is starting to cool down some.
“Home purchase applications have been falling since late March and are now 7% below their average levels in January and February 2020, despite low mortgage rates and easing access to credit,” the report said.
Anyone who has been hesitant to enter the high stakes bidding wars can feel some relief about how much they can offer.
Buyers who are offering $60,000 or less over asking are beginning to get the homes, compared to last month where buyers had to give at least $100,000 over asking to get the coveted key, RedFin real estate agent Candice Smith said.
Still, there are some statistics that show the market is still hotter than recent years, and people may want to wait a little longer to take the step to buy.
Over the last month, Redfin reports that asking prices of newly listed homes hit a new all-time high of $364,725, up 14% from the same time a year ago.
This is true of San Francisco as well, but of course the median sale price is drastically higher than the nationwide average.
According to Compass, the median house sale price reached a new high of $1.8 million in spring 2021 for the city.
Overall, pending house sales are still up by 29% compared to 2020, Redfin says.