It has been an UNreal first half of 2013 for home prices on the Peninsula and Silicon Valley residential real estate markets.  The median price for homes has increased from just 1 year ago by anywhere from 10% to 30% depending on which marketplace your home or property is located.  In many cases during the past 6 months, there have been some recently UNprededented results of as many as 40+ offers and as much as 40% over the asking price.  There is no doubt that the market has significantly improved over the past year and in many cases the values are now slightly higher than in the peak of 2007-2008.

This rise in values is great for sellers now considering selling their homes as inventory also remains historically low.  Buyers are challenged now by higher prices and continued low inventory.  Does something have to give here?  Recent evidence has show that some buyers are deciding to wait and see what happens with the market at this point.  The number of offers has seemingly come down as buyers who realize that the listing price may not be what they would end up having to pay for the home.  These buyers aren’t willing to participate if they cannot go over the asking price so therefore, they decide not to make an offer.

This is an important time for the residential market as there are many factors pushing and pulling at the market.  The best advice is to get some good advice from your real estate professional.