Making It in the Bay

Bay Area Homes Selling Below Asking Price for the First Time in Over 10 Years

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The Bay Area hit a milestone when it comes to home pricing Thursday that makes it more of a buyer’s market.

The average selling price for a home in the region is actually below the average asking price -- something we haven’t seen in more than 10 years. 

"Usually there's a bidding war, and that determines the price. But things have changed," said Daryl Fairweather, chief economist at Redfin. 

The company says one big reason for that is a more flexible tech industry.

"Now that remote work is giving many tech workers the opportunity to live in any part of the country, the Bay Area doesn't have such a stronghold on that talent,” said Fairweather.

"All of those things are adding to buyer confidence," said San Jose real estate agent Lynsie Gridley, adding that buyers are starting to come back feeling better about their chances without having to compete with multiple offers. And the deals are getting done.

"We were seeing offers coming in under asking, and sellers often accepting those offers anywhere from 1% to 5% under asking,” said Gridley.

Meaning, even with mortgage rates still hovering near 6%, prices may have, for the time being, found a ceiling.

"It's good that housing is becoming a little bit more affordable," said a San Jose resident.

Agents say that moving forward, they expect to see the housing market here pick up, thanks to better weather and people making new moves for the new year.

But, some potential buyers said they're still nervous about putting down big money for a down payment, because their company's stock prices have recently fallen.

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