The local and national media are “blowing the bubble” out of proportion. Listen to the experts and read the statistics as reported by NAR (National Association of Realtors) and CAR (California Association of Realtors).
The reality is that the market is balancing out, normalizing, flattening a bit, but experts are still predicting a continued appreciation (at least 10% if not more, compared to 20% + enjoyed here in recent years). Of course, there are no guarantees and no one knows for sure.
As a Realtor in the East Bay Area of California, I am seeing some price reductions on properties that have been on the market over a month, but this is because it is a Buyers market now. Agents are trying to find a starting price point after coming off of years of “throwing any price out there and getting it.”
Good agents do their homework and put a realistic price on the house in the first place, thus eliminating the need to broach the subject of price reduction with the Sellers. Since the Sellers ultimately call the shots,if they are properly educated on the current market (not the market 2 months ago or 6 months ago) then they are more apt to be realistic and follow their agent’s advice.
If you currently have or are soon to put your property on the market, and you have a good price on your property, just be patient; don’t be quick to reduce the price. Your property will sell, eventually; it’s just not a “quick-sell” market like we have enjoyed in recent years.
However, we are still seeing full price and near-full price offers being submitted, and even seeing some multiple offers here and there. Overall, real estate is still a great investment and experts are not predicting a loss, simply a slow decline in appreciation.