Gina Piper October 12, 2023
This month’s market update, to steal a line from Yogi Berra, is like déjà vu all over again. Very little has changed since September’s update. Rates remain at their highest levels in more than 23 years, inventories remain stubbornly low, and buyer demand is relatively strong despite the high rates.
The last two days have brought hotter-than-expected inflation data, putting pressure on the FED to continue their rate hikes despite pausing at September’s meeting. According to the recently released Fed minutes, they expect at least one more hike and a more extended period of high rates. There are some troubling economic signs (rapidly shrinking personal savings and record-high credit card debt exceeding $1 Trillion) that don’t get much coverage but could point to tougher times ahead, as the high gas, food, and shelter prices are taking their toll. Many households are running out of savings and relying on credit cards to survive.
Inventories are expected to remain very low for the foreseeable future until we get some rate relief. As I mentioned in last month’s update, most people are “rate-locked” in their current homes and unwilling to sell them. The current high-rate environment is expected to last at least through Q1 of 2024, so I don’t expect to see any meaningful increase in inventories for quite a long time.
Buyer demand is still healthy, but buyers remain picky when purchasing a home. Homes in good condition that are nicely updated are selling much quicker than homes that require work. Pricing a house correctly in this market is very important, as overpriced homes tend to sit on the market for extended periods and sell for less.
Stay up to date on the latest real estate trends.
Real Estate Trends
What is Happening in the Market
Real Estate Trends
How Fire Insurance Can Affect a Real Estate Transaction
Real Estate Trends
The Battle Between Clear Cooperation and Private Listing Networks
Livermore
Love Life in Livermore CA
San Ramon
San Ramon's City Center
Pleasanton
Pleasanton's Winning Lifestyle
Pleasanton
Where to Grab A Tasty Slice
Upcoming Events
Home Maintenance
The Best Nurseries in the Tri-Valley
Choosing an agent is perhaps the most important decision in the buying or selling process. I am confident that I provide an unsurpassed level of service and professionalism that comes from over 20-years as a full-time agent and well over 1,000 successfully closed transactions.