CNBC yesterday published an article warning that the fall housing has shifted to a buyer’s market. Several factors contribute to the shift, they claim:
1. People think mortgage rates will keep falling so they wait.
2. Many people don’t believe now is a good time to buy or sell, although they are not concerned about losing their job next year.
3. People are willing to take their time.
However, CNBC fails to clarify that the ups and downs of the real estate market are very different depending on the location. I don’t think their statement is about the shift to a buyer’s market is true for Silicon Valley. Activities might have slowed down but it’s more because we just saw the end of the peak spring-summer selling season. Inventories are still low in most areas and prices haven’t decreased. With the interest rates at historically low levels, a solid employment picture, a still growing stock market, buyers and sellers should feel very safe to get into the market. Check out my latest Youtube video for a snapshot of the Silicon Valley market last month.