Market Report
October 18, 2023

East Bay Insider - October 2023 Issue

East Bay Insider - October 2023 Issue

EAST BAY IN REVIEW

 

Though tragic geopolitical events may influence inflation, equity markets, and the unemployment rate, the East Bay housing market is steady. Buyers continue to adjust to higher rates and I sense more and more sellers are itching to sell. 

 

On Volume and Pricing

The inventory trend continues to hover around 20% below one year ago, with only three East Bay cities in positive territory. The 2/3 of sellers with sub 4% interest rates remains a key factor keeping homes off the market, but so is a shared sentiment to wait till prices have recovered after the drop that started mid 2022.  

 

On Competition

 

Parts of the greater Bay Area are slowing, but the East Bay remains among the most active. Homes in good locations with comfortable layouts are gathering multiple offers with most selling above the listing price - averaging 10% over.  Still, agents are caught off guard when assuming their listing would garner multiple offers, but don’t. 

 

For buyers, I find myself repeating how I come to recommend an offer price - first visiting the home, reviewing disclosures, but the key is the relationship created with the listing agent throughout the marketing period. The day before offers are due, I gauge the level of interest and a likely offer price. This market takes a very methodical approach - I can’t rely on gut and instinct as I once did. 

 

The Next Few Months

 

Lower levels of inventory will continue through year-end thereby maintaining a competitive environment and supporting home values. Premium neighborhoods are more protected - a good reminder why location is so important. Without more inventory, the erosion of home affordability will remain a steady problem in the East Bay - and I don’t see a correction looming…though geopolitical tension is real.

 

Please reach out to chat with your observations or questions. 

-Alex

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