'Buyer Fatigue' May Be Setting In For Bay Area Homes Under A Million
CUPERTINO (KPIX) - Allen Dugan's home is still available after one open house which last year would have been unheard of for a property like this in Cupertino.
"It's unpredictable. We're hoping for the best. Hoping to get a high price," says Dugan.
It's a refurbished farm house with a main house, a guest house and detached garage with a studio, all on a quarter acre. It just listed for $3.2 million.
But Dugan realizes the Silicon Valley real estate market is changing again.
"We've been following the market for a number of years and it's time to make a move," he says. "The market was crazy and now it's gone from crazy to good."
New numbers suggest the Bay Area real estate market cooled off a little in the May to June time frame.
Sales of homes under a million fell by 50 percent since last year.
Higher-end homes are holding their value, but are taking longer to sell.
Real estate people are calling it "buyer fatigue."
"A year ago, two years ago, the poor buyers, they made offers, every weekend they'd make an offer, they wouldn't get the house -- the next week they'd make an offer and wouldn't get the house," says realtor Dave Clark. "They'd make 20 offers before they got one accepted. That's how they got buyer fatigue, they got tired of making offers."
Clark says some homes are still getting offers for over the asking price but others are selling for below asking price.
He calls it more of a "normal" market and it's an opening for some buyers who may have been sitting on the sidelines.
"Now it's what I call a perfect market. Prices are where they should be, activity is where it should be. We have multiple offers sometimes, sometimes we don't," says Clark.
So far, no offers on Dugan's place but since it's walking or biking distance to the new Apple campus it shouldn't take long.
