Listings On Track To Blow By Recent Totals
A report from the San Francisco Chronicle in California. "If it seems like more 'For Sale' signs are popping up in your neighborhood, you’re not imagining things. In most parts of the Bay Area, more people put their homes on the market in August than they did last August, and this month is on pace to be the biggest September for new listings in many years. Combine that with a small slowdown in the pace of sales, and buyers are finding a little more to choose from in a market that has been starved for inventory."
"'The market has shifted. The foot has come off the accelerator but we haven’t seen the foot slam on the brakes,' said Jordan Levine, an economist with the California Association of Realtors."
"The number of existing, single-family Bay Area homes for sale on Sept. 8 was 34 percent higher than the same date last year, the association in its report for August. The median time on market before an offer was accepted was 18 days in August compared with 15 days in July and 15 days in August of last year. The median price for an existing, single-family home was $935,000, down 4.6 percent from July but up 10 percent from last year, the report said."
"Statewide, active listings were up 17.2 percent from August 2017, the fifth and largest of five consecutive monthly increases. Before that, active listings had declined for 33 straight months. 'I’ve had an influx of inquiries' from people who own second homes, some of which are rented out, said Dona Crowder, a Coldwell Banker agent in San Francisco. She has brought them up to date on Prop. 10, she said, and 'I think you will see rental houses being sold if that passes.'"
"In San Francisco, new listings in August were below last year, but September is on track to 'blow by recent totals,' said Patrick Carlisle, chief market analyst with Compass, a real estate brokerage."
"In the first 20 days of September, 738 homes, condos and other residential properties were listed in San Francisco, he said. If that pace continues, new listings could top 1,000 for the month, compared with 749 last September and 785 the one before that."
"Carlisle noted that only 21 of this month’s new listings specified that the homes or condos were under lease and subject to a tenant’s rights for possession, 'so it doesn’t look like Prop. 10 is a major motivator to sell.'"
"In Alameda and Contra Costa counties, new listings this month are on pace to be the highest since 2011, said Michael McFann, chief technology officer for the Bay East Association of Realtors. In San Mateo and Santa Clara counties, September new listings totaled 419 and 905, respectively, through Thursday, according to MLSListings, the multiple listing service for those counties and three others."
"At that pace, they could reach 628 and 1,357 for the full month, surpassing last year’s totals of 527 and 983 and becoming the biggest September for new listings since 2010."
"Tom Watson, an agent with Climb in Oakland who works in San Francisco and throughout the East Bay, said he typically has 'about eight buyers in my pipeline: getting approved, looking, writing offers. In the last three months I’ve had one, maybe two buyers.' On the flip side, he normally has one or two listings; now he has 10 clients who are selling or getting ready to list."
"Most of his listing appointments 'are people saying, ‘I’m at or near retirement, I can’t believe my house is worth what it’s worth. I’m cashing out and getting out.’ I have people who moved to Oregon, Redding. Most are people whose house is a significant portion of their net worth. They are moving to markets where they can buy houses for $200,000 or $300,000,' Watson said."
From Curbed Seattle in Washington. "After years of rising rent costs, could things get a little easier for Seattle renters? A new report from real-estate group Zillow shows that for the first time in years, rent not only didn’t increase in the Seattle metro—it showed signs of reversal. In Seattle proper, median rent decreased a full 4.5 percent within the city limits."
"This data shows signs of a tipping point for Seattle rentals that’s been on the horizon for a little while. Back in January, reports showed a dramatic slowdown in rent increases. Landlords, increasingly, tried to entice prospective tenants with giveaways and short-term deals, but at the time, the rent itself wasn’t decreasing yet."
"Zillow senior economist Aaron Terrazas attributes the change to a dramatic increase in inventory. In the metro, rental housing supply grew a whopping 32.9 percent over the past year. 'The boom in multifamily building after the housing market crashed is catching up, with new units coming online and adding to the supply of rentals in Seattle,' said Terrazas. 'At the same time, a large swath of millennials, particularly at the older end of the age range, are entering the homebuying market, which eases up on the demand for rental units.'"
From The Chronicle in Washington. "Western Washington had the largest supply of homes in three years this August, according to Northwest Multiple Listing Service. Buyers also saw fewer bidding wars. Northwest MLS director John Deely said many buyers are showing more caution and presenting offers with standard contingencies. These would include inspections and financing provisions."
"'Sellers should be careful to avoid overpricing as savvy buyers are wary of properties pushing (on) the upper end of the market,' Deely said. 'Properly priced properties will still see heavy activity in this market. Sellers of homes that linger on the market are reducing their prices to spur activity.'"