What's going on with the market and where are we going?
TL;DR
- Prices at highest level. Some areas jumping 20% this year alone
- Volume is WAY down. Inventory is tight leading to less sales
- Houses still outpacing condo sales with multiple offers and overbids
- Intertest rates climbed faster than previously anticipated
- The market is starting to change due to higher interest rates
The year is unfolding before our eyes and the results so far are interesting to say the least. Record price gains coupled with dismal volume is fueling the market against a tightening policy that should be doing the opposite. When will the market change? Many are speculating later this year or in 2023 an adjustment as we see accelerating rates push against the current momentum. |
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| Single Family Homes Continue Upward Trajectory |
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2022 is still shaking up records. Every county so far this year is in the green with Median prices alone. Some counties now have record sold figures never seen before EVER.
| Median Closed |
1Q21 |
2Q21 |
3Q21 |
4Q21 |
1Q22 |
1Q22 from 4Q21 |
| San Francisco |
1,650,000 |
1,880,000 |
1,805,000 |
1,820,000 |
1,875,000 |
3.02% |
| San Mateo |
1,750,000 |
1,950,000 |
1,900,500 |
1,900,000 |
1,980,000 |
4.21% |
| Marin |
1,550,000 |
1,720,000 |
1,730,000 |
1,607,500 |
1,750,000 |
8.86% |
| Alameda |
1,100,000 |
1,300,000 |
1,286,000 |
1,250,000 |
1,350,000 |
8.00% |
| Santa Clara |
1,490,000 |
1,663,500 |
1,639,444 |
1,650,000 |
1,850,000 |
12.12% |
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Interest Rates & Loan Programs
The mortgage market is moving faster than we've seen in a long time. Rates in the last few months have climbed over 2% from the high 2's and now are hovering in the 5% range. What does this mean for affordability?
We’re looping in a local mortgage expert, Adam Hinh from Newrez to provide his analysis of how the cost of money is changing rapidly. Adam can share customized lending solutions to help you navigate today’s competitive market.
Contact Adam today to inquire about additional loan programs that help you buy first and then sell later along with ways to obtain the most competitive rates for your financing needs.
(415) 260-0499 / Adam.Hinh@NewRez.com |
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| Rates jumping up 2 points higher equals additional cost of capital by ~25% |
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The Market Is Changing..
The Spring selling season is well underway. Typically the best time to sell in the Bay Area is before the school year is out and after the school year starts (Real Estate market cyclicality is March through June and September / October).
This year we expect the normal cyclicality to take hold again. If you want to sell now there is still time. Our marketing team typically takes as little as 24 hours to prep a home to bring to market.
Off-Market: Many don't realize but there's also a strategy we use to sell roughly 10-30% of properties we work with each year to garner higher selling prices and ease the tension of the open house madness. Think qualified buyers with minimal impact and higher selling prices. Ask us how and check out our most recent succcess below.
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