Sellers a Bit Slow on the Uptake
Buyers and Sellers 'Worlds Apart' as They Adjust to New Market Conditions -
PLEASANTON, Calif., May 23 / --" Sales activity in the resale housing market in the first quarter of 2006 was down over the same period last year as unseasonable weather and consumer uncertainty contributed to a sharp decrease in total unit sales (-15%) in the Bay Area, year-over-year, according to a report released today by Prudential California Realty."
"Properties were spending significantly longer on the market as active listings accumulated (up 65 percent, year-over-year), providing an abundance of choice for buyers."
"Buyers' and sellers' expectations were worlds apart as rising inventory levels and a "wait and see" attitude among consumers afforded buyers more leverage than they had in several years. Overall, sellers were slow to acknowledge the power shift and the discord in the market affected sales as both sides adjusted to the new normal."
'"Several factors contributed to the significant drop in unit sales in first quarter," said Sherry Chris, chief operating officer of Prudential California Realty based in Pleasanton. "Consumers were learning to negotiate through the dynamics of a changing market after a long period of heated activity. This, combined with rainy, cold weather, which kept buyers from visiting open houses, worked to depress market activity."'
"All counties saw a decrease in unit sales with Napa County and Contra Costa County experiencing some of the sharpest drops."
I think I've spotted the trouble... don't think it has anything to do with rainy, cold weather.... (p.s. Toll got it right. Its the price, stupid!)
"Conversely, year-over-year increases on median prices were resilient, with some of the highest increases occurring in the most exclusive areas of the region, including Tiburon in Marin County."
"The median price of a single-family home in Tiburon increased by 34 percent over first quarter 2005, from $1,712,500 to $2,300,000, and in the Pacific Heights/Marina area of San Francisco County, a single-family home increased by 22 percent from $2,675,00 to $3,275,000, year-over-year."