Deleon Realty, a well-known real estate company in the San Francisco Bay Area, was featured again in this episode to share the latest updates on the spring market with Maggie, a buyer’s agent.
Leo: Maggie, can you share with us the current market conditions in and around Palo Alto? Are there any fluctuations in property prices or changes in supply levels – are they scarce or increasing? These are concerns for many buyers.
Maggie: In the spring, there is typically a higher inventory in the market. Over the past few weeks, especially after the Super Bowl and President’s Day weekend, we have seen a noticeable increase in listings. However, even with more inventory compared to the slow season, the supply still falls short in meeting the demand from buyers.
Currently, in the market I observe, all standalone homes receive multiple offers. As I hold open houses weekly, I can see the number of buyers coming through.
Last week, we listed a standalone home in Palo Alto, and during the weekend open houses on Saturday and Sunday, we had over a hundred groups visit. Eventually, we received 11 offers. This shows that the market is still in a situation of high demand and low supply.
Although interest rates have slightly decreased, the economic outlook is uncertain. Particularly in cities like Palo Alto and its surrounding areas such as Los Altos, Redwood City, Menlo Park, and Mountain View, we continue to witness a seller’s market with prices trending upwards compared to the same period last year.
I believe the market conditions in the spring of this year mirror those of 2021; that’s the feeling I have.
As a specialized buyer’s agent, I submit offers weekly in the market, and I can feel the high activity levels. Especially in Palo Alto and its neighboring cities, which are attractive for tech professionals and families seeking top-rated schools.
Leo: As a buyer’s agent, could you share with us what preparations buyers need to make in the current market conditions and what are the biggest obstacles they face?
Maggie: Firstly, buyers should ensure their mortgage pre-approval is in order. Having underwriting pre-approval is even better because in a competitive seller’s market, sellers will have more confidence in accepting your offer, giving you a better chance of securing the property.
Secondly, finding a local real estate agent familiar with the area is crucial. For instance, Palo Alto itself has 13 neighborhoods, each with distinct characteristics and price ranges. By understanding your budget and priorities, a knowledgeable agent can introduce you to suitable properties, saving you time and effort.
Many properties in the market have significant differences between the listing price and the final selling price. It’s essential for buyers not to rely solely on data from platforms like Redfin but work with an agent to navigate the nuances of each listing efficiently.
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