In a favorable new trend for homebuyers, Bay Area home prices have seen a drop, according to the latest numbers from real estate database company Zillow.
In many cases prices have dropped after the selling price has been listed, with sellers reducing after a low response rate from buyers.
“You won’t see a lot of multiple offers, overbidding,” said real estate agent Sophia Delacotte.
Phil and Nancy Carlson recently sold their Campbell home, and shortly after listing it they dropped the price.
“Yes, the house that we just sold, we did lower the price,” Phil Carlson said. “Not a great deal, but we lowered it after three weeks.”
According to Zillow, 16% of listings in the South Bay and 12% in San Francisco dropped the price in the last 12 months.
“Job employment is good in Silicon Valley, people have a decent income,” said Dellacotte. “But people are done, I believe, buying at crazy prices.”
The number of IPOs has dropped recently, and buyers are becoming more cautious.
“I think it’ll be fine,” Carlson said. “It seems to be slowing more gradually than, say, 2008.”
The good news for home sellers is that the jobless rate fell to its lowest level in 50 years, according to new numbers released today, which means that people will still be able to buy houses.