Home price drops are now defining our local markets in Silicon Valley.
Price drops are now appearing at every price point!
As this situation has progressed, we were seeing mostly homes at the higher end being effected. Now, we can see this trend of home price drops hitting home prices at levels even below average price.
What does this mean for real estate?
Increasing Buyer power.
Each day that passes we see prices and market conditions moving toward favoring buyers. These home price drops look like they are just the beginning of a continuing trend for our market.
What does that mean for our markets?
More inventory will come.
Each week we are seeing more homes coming onto the market and staying there.
Prices or at least how much they increase is going to drop.
This is already happening. From slowing increases, prices dropping year over year – we are seeing a fundamental pivot in the market.
Check Out The Last Show!
I came across an interesting article where the Chief Economist for the National Association of Realtors suggests that home prices in 2023 will go up by about 1%. We will chat about that and offer up an alternative viewpoint – particularly regarding what is likely to happen right here in Silicon Valley.