May 2022 Report

 When an overheated market cools, the change is typically gradual (absent a disaster event), and does not mean the market is weak by any normal standard. After 2 years of scorching demand, it may be difficult to remember what a more normal market feels like, but people will continue to buy and sell homes in the elite neighborhoods of the Stanford Circle cities. 

As of late spring, less expensive home sales have generally seen considerable declines. For the time being, sales of luxury homes ($5 million+) have held up, but affluent buyers tend to be more affected by financial markets, which became very volatile in May. 

Market changes are often uneven in the early months of a transition, with one home selling in days at 25% over list price, while next door, the seller has to reduce their price to get an offer. As markets cool - and markets are cooling across the country - buyers become more discriminating. Negative conditions previously ignored are noticed; more negotiation occurs; multiple offers and overbidding decline. Listings that are well prepared, show well, and priced right will have an increasing advantage. 

We will have to wait and see what occurs in the economy in coming months. 

What is happening in our market is more complex than we can communicate in the following charts. Reach out to us for more information. We love to discuss the nuances that make our market so unique.