Market Ups, Downs and All Arounds

Market Update
Author

Kyle Paquin

Published

April 6, 2023

How’s the market? - Fragmented

Spring is rebounding in buyer demand and homes are taking less time to sell but buyers are sensitive to everything and deals are falling through. Buyers had blinders on last summer but have magnifying glasses today. Concessions are a serious part of the conversation around a transaction. Use these charts to inform your sellers because prices are only seasonally increasing even though demand is up and listings are sparse. Overall yearly trends are down so don’t price listings with sales older than November 2022 unless you can make mental time adjustments.

Mortgage and Me

This section is the summary of the ongoing sitcom, “Mortgage and Me”, where you get news of what the banks are doing and how it affects us all.

Mortgage Rates: Bouncing from 6-7%

As I have written before, rates above 7% will mean more price declines and rates below 5.5% will restart price growth. Without a doubt, rates continue to be the x-factor on how the market will change.

Refinance Volume Boucing Around

Due to rates staying between 6-7% for 6 months straight, many owners are continuing to pursue HELOCs and other financial arrangements. Financing has never been more testy in this market. I have seen many owners shopping 2-3 lenders just to see their options.

New CalFHA Loan Program

The California Housing Finance Agency came out with a dashingly enticing loan program where FTHBs (first-time-home-buyers) can get a 20% down payment if they give the State 20% of the appreciation when they sell in addition to paying back the down payment. As a reminder, homes don’t always appreciate in price between sales so be careful with pushing this product to your clients. 20% of a negative number is still money owed to the State.

East Bay Area Market Update

Homes in our three counties are selling for an average of 17% less than last March. That is wild.

East Bay Area March Housing Trends
Alameda, Contra Costa, Solano
2022 2023 % Change
Median Price 1030000 852250 -17.3%
Average Price per SF Inf 575 NaN 
Number of Sales 2334 1522 -34.8 
Median DOM 8 14 75.0 
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Estate Appraisals

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Services for Agents

Listing Appraisals

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Estate Appraisals

If you have client that needs appraisal work for estate, taxation or ligation purposes, we can help! Our firm services the East Bay Area, but we have a wide network of referrals and resources available for your clients. Contact us today to learn more about how we can assist your clients with their appraisal needs.

Our contact information

Office #: 925-937-3307

Email: office@valuableappraisal.com

Thanks for reading this market update.