Buyer’s market vs. seller’s market implies changes in the balance between buyers and sellers determining price. This is not a good portrayal of Burlingame real estate.
In 2000 the dot com boom made a lot of money for many Silicon Valley residents. This rapid increase in wealth fueled increased demand for houses, particularly better houses. Thus a “seller’s market” was created for many locations. As the graph above of the sales price per sq. ft. for Burlingame houses shows, this seller’s market affected Burlingame house prices throughout 2000.
However, if you look at the period following the first quarter of 2022, Burlingame house prices generally fell and then tended to be flat for four quarters. The phrase “buyer’s market” does not accurately describe the drop. Many home buyers expected significant interest rate increases in 2022 and chose to purchase before the increased mortgage costs. Those who purchased later typically have costs as high or higher than those who purchased earlier, with more money going to the mortgage costs vs. the home itself.
It is important to consider that many Silicon Valley home sellers are selling their homes and buying different homes in Silicon Valley at the same time. Whether it is a buyer’s market or a seller’s market doesn’t dramatically affect the cost of buying and selling at essentially the same time. However, changes in mortgage costs can greatly affect the cost of buying and selling simultaneously, as the mortgage can not be simply moved from the old house to the new one.