A new study by Trulia was done to determine whether Black Friday as a phenomenon existed in the United States housing market. Around 100 of the largest markets for housing were part of the study. Unfortunately, the study shows that San Francisco, Oakland, and San Jose are a few of the places where you are least likely to find price reductions on homes for sale. If you wonder whether that means you should avoid buying corporate apartments on Black Friday, we’ll share some more insight for you below.
Bay Area Home Price
The truth is that the average price of a home in San Francisco is already extremely high compared to other areas. In numerous counties, the price for a single-family home is at or above $1,000,000. You also may be hard pressed to find price reductions for those houses, even on Black Friday. It never hurts to take a look at your options but be aware of the reality when it comes to buying furnished houses for rent.
Why Prices Aren’t Moving
In the areas mentioned above, the markets are not only more expensive than in other areas, but the market is also often much tighter. According to the Trulia housing economist who prepared the above report, Felipe, Chacon, “There’s just not a lot of reasons for sellers to cut prices right now.” That makes it difficult to say that the Bay Area real estate world sees a Black Friday like other retail establishments do.
This report also shows that of homes in San Francisco, including furnished houses for rent, only 6.3 percent of them ending in the month of October saw one or more price cuts. This is quite low when compared to the national average for price cuts at 13.4 percent. Oakland saw 8% of houses experiencing price cuts, while San Jose saw 7.2%. You can compare that with the city of Phoenix to get an idea of the difference in numbers. In that city, nearly 1/5 of homes had one price reduction or more. In addition, the housing there is much cheap to begin with.
Considering the National Market
When looking at the report from Trulia, it shows that the best estimate of a Black Friday on a national level is in August. At this time, about 14 of 100 houses on the market had their prices reduced one time or more. The problem is that this doesn’t apply to the Bay Area to the extent that it does in other areas. That means you may not see the same deals on corporate apartments in the Bay that you would across the rest of the United States.
The reason for this is at least partially related to how competitive the Bay Area market is in general. Right now, there are extremely limited amounts of houses for sale and major investors tend to grab them up, which leads to higher prices for everyone else. People even bid above the asking price in order to have a chance at their dream home.
When looking at the report from Trulia, you’ll see the impact that this continuous pressure upward has had on prices. While there are 7.2 perfect San Jose listings that experienced price cuts, that’s down nearly 10% form the year before. Prices are rising across the area and looking for relief on Black Friday may not be the answer. It looks unlikely that prices will drop anytime soon unless something significant happens. Leave the Black Friday deals to the rest, real estate here isn’t having it.