Collins: Unsettled housing market still yields opportunities 

Just as inflation seemed to be leveling off and mortgage rates were dropping, a war broke out that has had significant economic and geopolitical impacts on the market.

During the spring market, we typically see new inventory entering to meet increased buyer interest. While we are seeing more inventory, some buyers are expressing hesitations to take the leap into homeownership.

“In the wake of the recent conflict in Iran, buyers have turned more cautious,” Clint Moore with Intero said. “Across the county, the number of houses going into contract has slowed.”

Adding to all this uncertainty is the ebb and flow of the stock market as it attempts to outrun the daily headlines. A significant amount of the Valley’s wealth is invested in the stock market, which has a major impact on buyers’ confidence.

Doug Goss of Keller Williams Bay Area Estates adds, “Santa Clara County’s market is in full spring mode. Inventory is picking up, but demand remains strong, especially for single-family homes, where well-priced, move-in-ready properties are still selling quickly.”

The days of houses selling as-is with a quick transaction seem to be behind us, with buyers being more selective. As an example, Moore said a home he listed last week had particularly good traffic through the open house, but only received two offers rather than the four or five he would have expected a few weeks ago.

In this turbulent market, sellers should be selective and work with experienced real estate professionals who can help them with strategic pricing and target marketing. Overpricing leads to being penalized in the current market. Seller expectations need to be realistic. Ultimately, the market will determine the value of your home.

For buyers, this unsettled market creates a window of opportunity that did not previously exist during the peak buying frenzy years. There is less competition for homes that need to be fixed up, which are outside of the most desirable school districts. This opens the door for negotiations on prices, terms and concessions.

Goss has also seen that condos and townhomes are a bit softer this year, giving buyers more time to make decisions and more negotiating room. To take advantage of these opportunities, it is critical that you get pre-approved for your loan and hire a real estate professional who is a strong negotiator. A patient and strategic approach could pay off big time as securing a piece of the American dream and a solid investment.

In this turbulent spring market, geopolitical instability and stock market uncertainty have shifted the Santa Clara County real estate landscape away from the recent buying frenzy. While inventory is rising, it is still well below historical norms. Cautious and selective buyers are replacing the high-competition bidding wars of the past. For proactive buyers who secure preapproval and strong representation, this unsettled market creates a valuable window of opportunity.

A strategic and patient approach by both buyers and sellers will be essential to successfully navigate this newly balanced market and capitalize on long-term investment potential.

San José Spotlight columnist Neil Collins is CEO of the Santa Clara County Association of Realtors, a trade association representing more than 6,000 real estate professionals in Santa Clara County and surrounding areas. Contact Neil at [email protected].