Jeff’s Mid-Year Real Estate Market Snapshot
Peninsula Real Estate Markets Searching for Direction
At the end of the first quarter, I wrote to you “First Quarter Sales Plunge, Real Estate Market Remains Good.” During the second quarter just ended, the opposite happened. Although home sales improved during Q2, the number of new listings increased in most communities causing the market to weaken slightly. This was especially true during the month of May when the 6.5% stock market drop reduced home buyer wealth and confidence. As a result, buyers became very discriminating about home location, floor plan issues, and price.
I expect Peninsula real estate markets to be strong but not overheated for the remainder of 2019 for two reasons. First, the stock market has responded favorably for several local companies that had initial public offerings during the first half of the year. The stock owned by local employees will become unrestricted, and therefore saleable, beginning in July and continuing until late in the year. A good portion of that new wealth will end up in local real estate markets. Second, a 5% or more stock market decline during May has only happened 6 times during the last 60 years. Each time such a drop occurred, with one exception, the stock market was up by 10% or more 12 months later. A rising stock market should also increase local wealth and homebuyer confidence.
WANT MORE SPECIFIC INFORMATION?
If you would like an in-depth analysis of market trends in your neighborhood, or assistance with home preparation or repair, give me a call at 650/823-8057, or email: Jeff.Stricker@compass.com, or visit my website: Jstricker.com. I would enjoy assisting you!