Is the market going wild???

[Brandon Elliott-Pandey]

As a Realtor, I am seeing inventory fly off the market in many cities and my buyers are having to fight to go under contract. Multiple offer situations, appraisal gap scenarios and even waved inspections.

For my fellow Realtors and investors out there... how are you all doing and how's your markets temperature?  

[Becca F.]

I'm not a Realtor but I follow my local market and attend meet ups. Santa Clara prices are up about 6% and San Jose 11% (near Silicon Valley) and San Mateo County up 4.8%. There are tech layoffs. I'm uncertain how this will affect home sales - if people overextended themselves on a mortgage and lose their $400k to $500k salary, they may need to sell. I continue to be shocked by home prices for a 3 bedroom/2 bath and multiple offers, $3.2 million for 2000 sq ft home as one example. These areas have surpassed home sales in San Francisco because people like suburbs. Median days on market 21 days Santa Clara. 

East of San Francisco, the more affordable counties Alameda and Contra Costa homes prices are down 0.7%. $700,000 to $1,700,000. There are some $1.9 to $2.5 million homes in this area. Offers within 1 to 2 weeks for a nicely renovated home under $1 million. 

Condos aren't doing well, values are still lower than 2018 to 2022. Could find deals and negotiate with the seller. 

San Francisco is starting to make a come back after COVID, people are returning to the city, partially because of being called back to the office. There are also lots of people who love city life. Interestingly I've seen multi-family selling for $2 million range, so about the same as a nice single family. 

I've seen a few homes were the agent didn't market it well (terrible photos, wrong information, seller leaving their messy personal belongings) where homes sat. Flipping has a good profit margin -most often done by experienced investors with lots of capital. 

Not many investors buying for long term rentals unless it's someone wealthy wanting to park their money somewhere. Lots of mid-term rentals and AirBnb, people building ADUs to get additional rental income and house hacking.