For the last couple of weeks, we have seen a slow down in the real estate market. The first place we noticed was in Piedmont. We lost a house 2 or 3 months ago in Piedmont that went for $700,000 over the listing price. It was insane. That was when the press started to show insane growth year over year for the area. But they don’t evaluate that daily or even weekly. They wait for the statistics to come out.
In Piedmont, Ca, which is right outside of Oakland, the real estate market there has slowed down to a crawl. We had open houses where we thought many people would show up, and only 3 people came out. The sellers are freaking out about the low turnout.
So we did a little research and found out that all of the open houses in the area had minimal turnout.
Piedmont has either peaked in value, and people are no longer willing to pay those prices, or people are finally going out without a mask and doing things they weren’t able to do for the last year and a half. I think that may have a lot to do with it.
Another market that has come to a grinding halt is Menlo Park. We have a listing for a four-bedroom for 3 million. That isn’t getting the usual interest that listings were getting in that area. But again, I am wondering if people are just hanging out and doing other things. They are finally able to travel again. Masks are off, and parks are busy.
Alternatively, San Diego, in the million-dollar range, is still busy. Same with Orange County and Yorba Linda in that price range. Is this the end? Is this a temporary slow down? Interest rates have nothing to do with it. They are still below 3. We will keep an eye on the market, and I am happy to chat with you if you have any questions or comments about the market, buying, selling, or mortgaging.