Key market dynamics
Increased inventory: There is more inventory available compared to previous years, giving buyers more choices.
Longer market times: Homes, on average, are taking longer to sell than in the recent past, especially condos.
Negotiating power: With more options and less urgency, buyers have more leverage to negotiate prices and terms.
Bifurcated market: The market is not uniform; there is a significant difference between the strong single-family home market and the more favorable conditions for buyers in the condo and townhome market.
Market segments
Single-family homes: This segment remains competitive and is still a seller's market in many areas, though conditions are more balanced than before.
Condos and townhomes: These have seen a dramatic shift and represent a buyer's market, with more listings and longer times on the market.
What this means for buyers
Take advantage of opportunities: With increased inventory, buyers have more time to find the right home and the opportunity to negotiate effectively.
Be decisive: While there is more room for negotiation, the market can move quickly for desirable single-family homes, so decisive action is still necessary once the right property is found.
Watch for a wider price range: Prices are still high, but the market is showing signs of slowing appreciation, which could present more value, especially in areas like Oakland where prices have been lower compared to the Bay Area median.
