Our Compass Market Analyst, Patrick Carlise canvassed a number of top agents and managers around the region, and they are commonly reporting a market that is "choppy," "uneven," "uncertain," "hesitant," "unpredictable," "very property specific," but with considerable opportunities for buyers: Some listings are selling quickly with multiple offers well over asking price, but other, sometimes similar, listings - that would typically be expected to sell quickly - linger on the market without interest. More transactions are falling out of escrow due to stock market swings or simple fear, but some big sales are still occurring - as of today, April home sales of $5 million+ were up about 24% year over year. There are reports of buyers and some sellers - spooked by recent political/economic events - deciding to stay on the sidelines until there is more clarity regarding what the future holds. Inventory is generally way up year over year, absorption rates are substantially down, and price reductions continue to climb to heights rarely seen in the middle of the spring selling season - but many agents report strong showing numbers and active open houses. In some markets, such as San Francisco, the house market remains much stronger than the condo market.
Generally speaking, it appears that the south bay and south peninsula markets are seeing the highest-demand markets, presumably at least partially due to the AI boom. San Francisco is seeing by far the smallest year-over-year changes in the number of listings for sale.
Many agents and managers commented on the "property specific" theme saying that the homes seeing continued strong demand and most likely to sell quickly, often with multiple offers, are in absolute move-in, turn-key condition, often professionally staged, correctly or even aggressively priced and skillfully marketed, in prime locations, with appealing outdoor space, and outside high fire-risk zones (with the attendant difficulties in finding homeowner’s insurance).
