When stock portfolios take a hit, buyers tend to move more cautiously, negotiate harder, or delay big purchases. In some recent situations, however, I’m seeing the exact opposite. In the past two weeks I have experienced preemptive offers in Berkeley, Oakland and San Francisco. Some homes are going into contract in 4 days! Meanwhile other homes are setting offer dates, and getting an entirely underwhelming response, if any.In the Bay Area, our housing market is closer tied to the stock market than elsewhere. Much of our local wealth is tied up in tech stocks. It should come as no surprise that with increased stock market volatility we’re seeing increased real estate market volatility. That said, demand for well-located, turnkey homes has proven to be remarkably robust, perhaps driven by a desire to relocate stock market assets into something tangible, usable, real.How best to navigate these stormy waters? Sellers, well-positioned and strategically marketed properties are still doing quite well. Don’t sit this moment out if you’re ready to sell. Buyers, get your financing in order to be able to pounce - you may find rare moments of leverage in an otherwise uber competitive market. Location and long-term value will always outweigh short-term market movements.
