Is the hot Bay Area housing market starting to cool? New research shows not only are there fewer bidding wars compared to last year, but also houses are taking longer to sell.
For example, a house in Mountain View was on the market for 70 days, and only after the list price was reduced did the owner get multiple offers. The sale is now pending.
Real estate agents say that's something that likely would not have happened last year. And bidding wars in the Bay Area are not nearly as common as a year ago, according to a new report by real estate brokerage Redfin.
Last year, a whopping 80% of homes sold by Redfin agents in San Jose had multiple offers, and this year, that number plummeted to just over 13 percent, Redfin found.
Also, homes aren't selling as fast compared to last year, something Intero Realtor Nancy Carlson is seeing in Los Altos.
"The average days on the market is increasing," she said. "Last year, it was seven to nine days. Now it's up, 10 to 14 days."
Gustavo Gonzalez, the president of the Santa Clara County Association of Realtors, acknowledged there is a recent trend of fewer bidding wars and homes staying longer on the market. But he added that homes that are staged well and priced correctly are still selling fast.
The chief economist for Redfin said these new trends may help buyers.
"If you're looking to buy in the Bay Area, now is a good time because there is less competition than last year," Daryl Fairweather said.
But she says its a short window of opportunity because the market is likely to heat up again, with bidding wars similar to last year.
San Francisco continued to see bidding wars last month. In July, 35% of all homes sold by Redfin agents received multiple offers.