Locally, the number of homes for sale jumped sharply between March and April and sellers, facing increased competition, have routinely dropped asking prices. Agents note that many sellers' price expectations shot through the roof over the winter, when the supply of homes on the market was minute and demand remained robust, leading to record prices paid in some areas. Another trend agents report is a growing number of sellers who've concluded a price peak is imminent. Whether such a prediction is justified depends on which industry analyst you talk to. But many experts agree that the rapid appreciation of the past 18 months is unlikely to continue amid a backdrop of weaker national and Bay Area economies.
Economists note there can be a lag between deteriorating economic conditions and buyer behavior.
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