Silicon Valley Real Estate Market March 2024
Congratulations to Compass!!
Third year in a roll, Compass is the #1 brokerage in the United States by sales volume according to RealTrends, solidifying Compass as the premier brokerage in real estate.
The recent significant development that has been widely discussed is the National Association of Realtors settled the Sitzer | Burnett commission lawsuit on March 15. Numerous news articles have contributed to confusion among our clients by inadequately capturing the specifics of the proposed settlements.
Moving forward (pending court approval)
(1) Commission can still be paid by the sellers, just can not be posted on MLS.
(2) Buyers are required to sign exclusive agreement with their agents prior to property showing.
Regarding #1, if sellers choose not to pay buyers' agents, buyers will have to pay their own agents. The lending side has not come up with the option to lump the commission into the loan for the buyers. This will particularly affect buyers who are already financially constrained.
The commission adjustment will also influence the entire real estate process, including property appraisals where appraisers will need to discern whether the sold price includes both buyer and seller sides commission or solely the seller side commission.
The Federal Reserve opted against reducing interest rates in the latest meeting, However, industry experts anticipate a decrease in rates by mid-year, with a projected decrease of up to 0.75% by year-end.
The higher interest rates have not stopped the multiple offer situation in most market due to low inventory. The inventory shortage can be attributed to homeowners locked in by loans with much lower rates. This low inventory trend is also driven by an aging population choosing to stay in their homes for longer periods. An average of 12 years in properties, as opposed to the previous average of 6 years prior.
If you have any questions or need real estate resources, I am happy to help. Don't hesitate to contact me.
My goal is to bring genuine care, outstanding real estate services, and significant value, in order to positively impact our communities and clients.
Below are stats for the last 13 months in Santa Clara and San Mateo counties. Stats in other areas are available upon request.
