In Search of a Unicorn: The Spring Market - Full Speed Ahead

The spring market has been barreling along, with a surge in additional inventory and very enthusiastic agents, but a dearth of bona fide buyers.

There are several reasons for the limited number of genuine, engaged, and savvy buyers. One, of course, is the unbelievable volatility in the stock market. Interest rates are still high compared to recent years, and, of course, there is a fear that political unrest and unease will topple the institutions of our government.

We don’t take kindly to things like that here in Berkeley.

Shifting Foundations

Overall, arts organizations, medical research institutions, Universities, and other entities that rely on government research grants as a primary source of funding have caused people to suddenly lose their incomes and their ability to buy a house.

However, beyond all this tumult and drama, a significant disconnect exists between sellers and buyers, as well as their differing perceptions of value.

It is akin to the very divided political landscape, but this time it is sellers who think they should get what their neighbor got in 2021, and buyers who believe they should be able to swoop in and buy things for free.

The Rise of the "Unicorn Buyer" 🦄

But more than this, there is a new kind of buyer. The type that wants a fabulous water view, but wants to be able to walk to a coffeehouse. They want to be able to send their children to a great public school, but they do not want to be more than a quarter mile from a BART station.

They want to be in an urban environment, but they do not want to hear any street noise.

They do not want to be anywhere with any crime statistics at all. They want to be able to get to a hiking trail within five minutes of their front door, but they will not buy a property that requires California Fair Plan insurance.

They want their cake and eat it too, in other words. There are very few houses that meet these sorts of criteria—realtors call them unicorns because of their rarity.

When did we all decide we could compromise on just about everything, but our houses need to be perfect? What happened to create this fantasy?

House Hunting vs. Instant Gratification 📱

I can point to reality TV shows, and house porn online, where people gaze lovingly at house after house without seeing any of the warts or wrinkles it may have.

I can point to pricing practices in our area, where a home that will eventually sell for $1,200,000 is listed for $899,000, and the realtor gushes about it going over 10, 20, or even 50% above asking—which is meaningless, because the price something sells at is the price it was meant to be.

I can also point to our Amazon, DoorDash instant gratification lives—we snap fingers and get precisely what we want in seconds.

Some of the dear pleasure I used to have in searching for a book in an actual bookstore, or something else highly desired, has gone away because, if you can afford it and have the internet, you can have it in hours or two days.

Final Thought

Buying a house is not like buying makeup—it is a huge commitment. As anyone who has ever been in love knows, no one is perfect. However, you can come to love imperfections if you give yourself enough time to understand what you've gotten yourself into.

There is no perfect house. However, many houses would truly make just about any buyer happy if only they would take the time to think about it.