The West-Coast Predictions Are True—Hello, Buyer’s Market
West Coast cities have made headlines over the last few years for their outrageous housing prices. Silicon Valley employees have had to live in vans in order to save up for a home in the area, while others have had to fight for the cheapest property available, even if it was the size of a box. Although the West-Coast has been a popular option for people looking for a new lifestyle or following their jobs, the prices have pushed people to reconsider their decisions, while long-term residents have been priced out of their own neighborhoods.
But, that might be about to change. A region that was recently considered one of the hottest sellers’ markets— particularly in cities like Seattle, San Francisco, Denver, Portland, San Jose, and Los Angeles—is now falling to the buyers.
Here’s what we know:
The Bidding Wars Are Over
In these West-Coast cities, buyers were forced to put in offers hundreds of thousands of dollars over the asking amount, because they were in a ruthless competition with other buyers as inventory was low and demand was high. But, now we can see a major slow-down in these bidding wars, and not only that, sellers are finding it difficult to find motivated buyers altogether. Now, the bidding wars have almost completely ceased.
There Are Major Price Cuts
At one time, buyers were willing to extend their proposed budget just to even have a chance of closing a deal on a house in one of these West-Coast cities. But, quite the opposite is happening now. Buyers are not offering to go up, they are simply waiting for prices to go down. Price cuts in these cities have been happening left and right, and, according to Bloomberg, a sixth of the listings in Seattle have been price cut in the last year. Those who are paying attention to the market here are more likely to wait it out than taking the best thing they can get.
Houses Are on the Market Much Longer
As we all know, one of the reasons a seller makes a price cut is because they are becoming desperate to get their property sold. But, those who are not willing to make price cuts (or, those who already made a price cut but the amount is still too high), will see that their home is sitting on the market that much longer. According to HousingWire, homes in Portland are staying on the market for 50 days, which means buyers will definitely have the advantage.
However, Buyers Shouldn’t Get Too Excited
Even though we’ve seen shifts in the housing market all throughout the U.S., the most noticeable shift is by far in the West-Coast. And, while there’s no doubt that this is excellent news for buyers looking to get a home on this side of the country because they won’t have to rush into their decision and settle based on what’s available and/or what’s cost-efficient, they shouldn’t get too excited.
Buyers who are thinking that it’s time to make their move should wait around just a little bit longer. Many experts have predicted that some type of change was bound to happen on the West-Coast, as the market needed to correct itself after four consecutive years of low inventory in these areas, according to HousingWire. Unfortunately, at the end of 2018, despite the increase in housing inventory, prices haven’t gone down to where they should be just yet.
So, while this is all good news, if you’re an agent working in one of these major cities, then don’t be surprised if the buyers don’t come knocking on your door just yet. That being said, be ready, because before you know it, the buyers will be coming in droves.