The Cautiously Optimistic Fall Market

The fall real estate market is in full swing and activity is picking up. Although homes in contract are up again and is what typically occurs during the fall months, new listings coming on the market lagged in August. Factors such as the uncertainty of where delta was headed and the recall election affected consumer confidence, but with the Bay Area having the lowest Covid-19 rates in the country, there is a sense of reborn optimism in the city. Most of the data that came in over the past week has been encouraging and recent economic releases show that the macro environment continues to recover. September market data will be available next week, so stay tuned if you’re curious to see if the market has changed by the numbers.

For now, here are a few real estate insights that are affecting the market today:

1. Home prices remain relatively stable from where they were in August, but September home sales are in line with the decline in August pending sales. Homes are staying on the market for slightly longer as well, so previously discouraged homebuyers may be beginning to see some signs of hope.

2. The Federal forbearance program is coming to an end and the numbers remain encouraging that the market will avoid another major foreclosure crisis. While 42% of homeowners got off of forbearance plans, the exit data shows that banks are open to working with borrowers who are still having challenges.

3. A recent Zillow survey found that about 40% of remote workers said they did not know if or when they would be required to return to their workplace. Earlier this spring, many remote workers in the city were beginning their home buying search, with the assumption back then that offices would be fully reopen by now but that didn’t happen. Without any definitive answers on office reopening, these would-be buyers may also be impacting the softer market.

PENDING FOR OVER ASKING PRICE

2 Bed | 2 Bath | 1,350 Sq. Ft. | Asking $799,000