Is it a “Buyer’s Market” or a “Buyers Market”?

April 13, 2009 · Julie Cleland

The short answer is BOTH! What’s the difference and how can the market be both? A buyer’s market refers to a market where the conditions are more favorable toward the buyer. In real terms, the buyer has an upper hand in negotiations due to conditions. But what do I mean when I’m referring to a “buyers market”?

I’m referring to the incredible number of buyers we are now seeing in our local market signaling what may be the end of the the real estate free fall, at least in parts of the bay area. Just this morning, in my office’s weekly meeting, we discussed open house traffic over the weekend. All the agents reported again, a trend we’ve been seeing over the last couple of months, there are lots of people out there looking to take advantage of current market conditions. Numbers reported started at just under 10 groups and went as high as 35 groups for a 2-3 hour showing. Many just jumping in.

Other signals point to the end of our free fall. Anecdotally, I’ve been looking at homes in Daly City and South San Francisco for multiple buyers I’m representing. It continues to be surprising the number of offers many homes are seeing. Just this past month I had a client write on a home that received over 20 offers. Days on the market seem to be dropping dramatically in some areas, especially if no seller bank is involved. In a number of cases this past month I’ve seen no less than 5 homes go on the market and be gone within less than a couple of weeks. And these homes haven’t sold just because they were low-balled on the offering price.

While I don’t expect to see the market suddenly go back to the early to mid 2000 market, the days of the empty, lonely open homes seem to be behind us. This may come as a surprise to buyers who’ve been told they are in the drivers seat and can get whatever they want for whatever they were willing to pay. We are seeing too many serious buyers, who are highly qualified, taking advantage of low prices, lower interest rates and government incentives finally deciding to this is the time to buy. If you’ve been waiting to get in, now may be the time. Remember, the only way to see the bottom of the market is in the rear view mirror.

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Filed Under Important Thoughts

Tags: Bay Area Real Estate, buying real estate, Julie Cleland, Millbrae real estate, Prudential California Realty, Prudential California Realty San Bruno, real estate trends, San Bruno real estate, South San Francisco real estate, south san francisco real estate for sale

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4 Responses to “Is it a “Buyer’s Market” or a “Buyers Market”?”

Brian Boisson on April 14th, 2009 9:36 am

Julie,

The increase in traffic is very notable, especially the traffic at the open houses on Easter Sunday.

I think we are on for a busy spring and further ahead.

Brian
Larry Franzella on April 15th, 2009 9:55 am

Hi Julie,

The entry level market is really coming back strong – there are a huge number of buyers out there and you are seeing multiple offers.

Larry
michael monozon on April 15th, 2009 10:44 am

great observation Julie. It is a new market again, and as always part of the Realtor’s role is to provide information and honest communication to the consumer. As they watch the information unfold in the Media (always the last to get it correct)they begin to see for themselves and then those on the fence start to make real decisions based on their needs.
The next few months are going to be very interesting
Adam Chinn on April 17th, 2009 4:58 pm

Hi Julie,
There has definitely been an increase in activity in the recent months. Many buyers out looking for homes and many multiple offer situations. I think one of the most surprising things for my clients was put well by you when you said, “This may come as a surprise to buyers who’ve been told they are in the drivers seat and can get whatever they want for whatever they were willing to pay.” Many people are looking for a “good deal” and while I can understand their thinking, everyone else is also looking for that same deal.
As Michael said, “The next few months are going to be very interesting.”