By most measures, the local residential real estate market is still going strong.
But there are signs that the market is cooling down some, at least for now.
You may have noticed a few more “for sale” signs in your neighborhood of late, suggesting that inventories are up. Homes are still selling but there are also signs some of those homes are selling for a little less right now, says Climb Real Estate’s David Contreras.
“There is talk of it cooling off a little bit, but what we’re seeing is more of a market correction,” Contreras said.
In San Jose, for example, the real estate website Zillow reports prices were dropped on 9.5 percent of listings in June, up from 7.2 percent one year ago.
“What’s happening is we’re seeing prices not going up $100,000 or $200,000 over the asking price,” Contreras said. “Things are getting a little more tamer.”
Contreras says certain properties are staying on the market longer than what sellers have been used to during the historic five-year-plus run of rising prices.
But there are other factors to consider.
“People are a little concerned about interest rates going up, but this time of year, July through August, you’re seeing more people on vacation, so there are simply fewer buyers during that time frame.”
Zillow expects the market to slow down next year, but a strong economy means demand for housing will also remain strong.
Don’t expect home prices to fall too far, Contreras said.
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