Happy New Year! Mortgage rates are at their highest level since June, hovering around 7.15% for a 30-year fixed. It seems that we are now in the "higher for longer" territory. On the surface, this is bad for buyers and sellers: higher rates directly affect a buyer's purchasing power and borrowing capability. If you are a seller, it shouldn’t come as a surprise that there are fewer multiple-offer situations, and you may not get as much for your property as initially expected. But looking more carefully at the market, there are definite silver linings on both sides.
If you are a buyer, we may be able to negotiate a rate buy-down from the seller and combine it with friendly down payment assistance options from one of our preferred lenders. For example, a $15K credit towards a reduced rate will save you hundreds each month, versus using that same credit towards reducing the final sale price, which would maybe save you $20–$30 dollars in monthly payments. If you are ever curious to learn more about the various options available and how they impact your monthly payments, we can easily put you in touch with one of our preferred lenders. They are always excited and happy to chat with our clients.
If you are a seller, take a look at the quarterly numbers in the tables below—our year-over-year sale prices are up across the board, except for Oakland which is down 5%. Both Alameda and Contra Costa Counties are flat from Q3 to Q4, which is a very encouraging sign given that the fourth quarter is historically slower and functions more as a value market. Prices are remaining stable. Next month, we want to see more new contracts or sold properties versus new listings. The only way prices are going to drop substantially is if there is a massive uptick in inventory. For now, the East Bay market seems to have reached a healthy status quo.
If you have any questions about specific neighborhood trends or strategies for your real estate goals, please don't hesitate to reach out!
Eli and Bill
Quarter over Quarter Housing Statistics
Alameda County, Contra Costa County, Oakland, Berkeley, Martinez, and Pleasant Hill
Q4 vs. Q3 Housing Statistics
Alameda County, Contra Costa County, Oakland, Berkeley, Martinez, and Pleasant Hill
