A REALTOR'S REFLECTION ON THE EAST BAY | December 2023
Happy holiday everyone!
As we round out 2023, I’d like to offer one last East Bay market update.
For one year now, the East Bay has seen far fewer transactions with the average home price remaining very steady - carrying on at $1.56m. Even while uncertainty has lingered for most of 2023, our market is evening out … its normalizing and if mortgage rates stay unchanged or decline further the next few months ahead, our real estate market should feel mildly bullish.
In November, as sales declined heading into these holidays, the average time a home remained on the market was just under 30 days - a 5% increase and a trend lasting now for 5 months. Higher-priced homes experienced extended selling periods. Homes lingering on the market is directly influenced by the limited number of buyers seeking to purchase which is influenced by mortgage rates. As the market normalizes to one that evens the scales between buyers and sellers - as buyer leverage finally increased this year, the activity among buyers has softened due to affordability. Uncertainly and the cost of a home discourages ones appetite to shop… interesting and understandable.
And so with East Bay sales volume averaging 15% below a year ago, less buyer activity, and homes taking longer to sell, I feel optimism when connecting with colleagues, contractors, and clients. November’s economic strength, with lower inflation and sixth straight weeks of mortgage rates trending down, created a lot of market enthusiasm which spurred mortgage rates lower and loan applications to increase. Looking ahead, I anticipate more ready buyers will emerge and if mortgage rates drop below 6%, homeowners wishing to move will likely decide the wait is over.
I’m excited for 2024 to begin and wish you each a restful holiday break.
-Alex
