Real Estate Trends
Sep 01, 2018 10:48AM
By Don and Norma Flaskerud
As we go to press we are mourning yet another giant in our community, Martin Nelis. My Irish friend put his roots down deeply in Pleasant Hill and was indispensable in everything he did for the city as its public information officer. We enjoyed interacting with him over the years, from planning the city’s 50th Anniversary Gala to sponsoring events like Concert By The Lake and breakfast at Community Service Day. Martin had his hand in doing so much for the city, with a great personality, some Irish wit, and charm. We are crushed he is gone far too soon due to a tragic accident. Our condolences to his darling children, his family in Derry, N. Ireland, and his close friends and co-workers.
Erik and I continue working hard in real estate, honoring the legacy of Don and my 31 years in the business and carrying it forward with integrity and enthusiasm. We miss Don every, day but his knowledge and work ethic is one we carry on. We appreciate all the clients who continue to put their home sales in our hands, and we work hard to see each one is handled with utmost professionalism!
With that in mind, we do have our fingers on the pulse of the local real estate market. Yes, we too have seen home sale price reductions and longer market times. Yes, we still see multiple offers, but instead of many offers we see a few. I have seen this time and time again; when home prices go up in a bidding frenzy the next nearby home seller prices his/hers at that price, and it just doesn’t sell! When we see that, it generally means the market is not shooting up anymore; it is either in correction mode or SS! What is SS? Summer Slump! As you read this, summer is over, but as I write, not yet. I look forward to writing the October article because by then we will have a more accurate feel for what is happening in the market. There are three options: prices will continue to go up due to low inventory and affordable interest rates, or prices will level due to unsustainably high prices, or prices will drop due to rising interest rates and buyers becoming shop weary and stepping back. Any one of these options is a possible scenario.
Like the Bay Area weather’s microclimates, we have micro-markets. As you well know, the closer you are to the Caldecott Tunnel and the view of San Francisco as you exit through the western end, the higher your home value will be. Within each town there are neighborhoods which are hugely popular and in demand. Therefore, home prices in higher demand areas will be sustained much longer than in low demand areas. Keep that in mind when evaluating your home or one you might want to buy.