The difference between macro and micro has always been significant when it comes to the real estate market. National trends, and the inferences one might draw from them, often don’t apply at a local level.   

Here in the East Bay we know how true that is. Our unique combination of dynamics often makes us an outlier.  We’re seeing that right now in shifting prices.   

One of the leading indicators experts often point to as a sign of a market slowdown is price reductions. This makes sense. When buyers can or won’t continue to pay current prices, sellers need to adjust their expectations, and their list prices, downward. And that is surely happening right now in the East Bay market.                       

But there’s a quirk here that might confound the casual observer: price increases, lots of them, happening right now. That’s right — price increases in a slowing market. In the month of June, 36% of all price changes on homes for sale were an increase, not a decrease.

Over the past two years, sellers and their agents set list or “asking” prices artificially low in order to spark auction-like dynamics with lots of bids. These list prices were frequently far lower than the seller would accept. Now, listings that were priced, say, a month ago, when vestiges of the white-hot sellers’ market still existed are seeing increases to what sellers actually hope to get. Some call this “transparent” pricing. You can also call it “reality”.

In a transitioning market, it is so important to work with a local agent who studies and understands the nuances of the local market day by day. Things are moving fast. This is my job: to know, guide, and provide clarity.