The National Association of Realtors reported dismal existing home sales in July, dropping 27 percent, and some Bay Area markets are faring better than others. Inventory is up nearly 20 percent year over year in some Peninsula communities, and prices are down.
“You don’t have the demand because there are so many choices that buyers feel like they can take their time, often coming back to a house three or four times,” said Mary Harris with Intero Real Estate Services.
All cash offers in East Palo Alto, for foreclosures and short sales, have squeezed out other would be home buyers.
“The banks are holding back some of those foreclosures and so that’s going to be what will help to keep the market low,” said Harris.
Harris says combined numbers for Peninsula real estate have been quite good, insulated from deviations and severe drops because of a good job base, despite 9.6 percent unemployment.