July 2022 Real Estate Market Report

Welcome to the July 2022 issue of the Artemis Advisor newsletter! We hope this edition finds you swaying in a hammock somewhere warm, cold drink in hand. If not, you’ve probably got your puffer on and a hot cocoa, as Julyuary is in full effect.

Market Update

We’re sure it comes as no surprise, but the San Francisco and Marin real estate markets are cooling from all-time highs. The Fed’s aim to dampen demand has found its way into local real estate and most locales around the country are reporting the same. As a result, multiple offers and overbidding — while certainly still possible — will generally be in decline and be very property-specific.

Out of the homes that are actually selling, they are doing so quickly and in many cases, for over list price. This shows that demand for high-quality housing is still strong, despite uncertainty and volatility in the markets. Buyers continue to be willing to pay a premium for properties worth fighting for, and some have chosen to rush in now for fear of higher rates in the future.

Monthly Prediction: Stealing Thunder

When the real estate market is transitioning, the various actors get the memo at different times. Buyers are usually the first to react, expecting to waltz in anywhere they want and scoop up a screaming deal, while sellers tend to remain in denial about the new environment— an environment where they are now having to compete with other sellers for a limited number of buyers. This can create challenges in expectation alignment as both buyers and sellers adapt to the new landscape.

However, these changes can also bring about opportunities for those who can capitalize on them— such as quick-to-react sellers garnering more attention versus their competition. These market conditions are where competitive pricing and impeccable presentation reign supreme. Whoever can steal the thunder during this upcoming selling season will transact, while other listings will end up as withdrawn or canceled by the end of the year. Getting deals done will require lots of skill and experience.

Now more than ever, it is imperative that listings are in top showing condition when they hit the market. Buyers will congregate around well-marketed, turnkey homes. If a home is dated or needs repairs, it will be increasingly difficult to compete with move-in ready inventory— unless of course the price is so attractive that it can’t be ignored.

Real estate is notorious for lagging other economic indicators. As a result, price effects from current changes in the real estate market won't show up in the data for several months. We really won’t know what price action has taken place until the autumn is over, so be sure to stay tuned.

With inflation at a 40-year high and the most aggressive interest rate hikes since 1994, having the best counsel possible in times like these is crucial. Be sure to follow the latest by reading and sharing our newsletter, and of course reach out if you’re in the market to buy or sell. We’re ready to help!

Click here to read the San Francisco report.

Click here to read the North Bay market report.

Click here for a North Bay city-by-city breakdown.

Enjoy your summer and we'll be back in touch soon!

Disclaimer

_{NFA / DYOR - Not Financial Advice / Do Your Own Research}

_{Information provided herein is for informational purposes only and is subject to change without notice. This publication does not constitute, either explicitly or implicitly, any services or financial advice by Artemis Real Estate. Information provided is not guaranteed, and Artemis does not guarantee the accuracy of any information obtained from a third party.}