Home shoppers may be less likely to face a bidding war compared to a year ago.
San Francisco’s Bay Area remains the most likely market where buyers will face a bidding war. Twenty-two percent of offers in April there faced competition, which is still down significantly from 75% a year ago.
Multiple billion-dollar San Francisco-based companies are going public this year, so Bay Area bidding wars could come back with a vengeance, pushing prices back up in the next year.
In Silicon Valley there is a demographic churn that seems to be pushing more homes onto the market. Longtime residents who have seen the tech hub grow up around them, inflating their cost of living, are looking to cash out while they can still get top dollar.
“People who live here are leaving in droves,” says Julie Wyss a broker in San Jose. “I’m going on three listing appointments a week — people in their 50s and 60s — who are sitting there going, ‘Why should I stay here?'”
Their money can go a lot further in Arizona, Colorado, Oregon, New Mexico — or just about anywhere.