Monthly report · No.11
TUESDAY, FEBRUARY 11, 2025
the podcast is back!
By Declan Spring
After an almost complete absence in 2024, Let’s Talk, with Declan Spring has rebranded as The Mostly Real Estate Podcast, with Declan Spring. We’re excited to announce the finished construction of a purpose-built studio at our offices on Rose Street in Berkeley, and we are lining up guests and committing to launching a new episode bi-weekly beginning in March. Find us and support us on Apple Podcasts, Spotify, or wherever you get your podcasts!
the state of the market
The Housing Factor
By Ehsan Habib
Comparing January 2025 to January 2024, the data is consistent with the trend we saw throughout 2024. Supply is increasing, demand is relatively flat, and prices are continuing to appreciate.
Supply
January 2025 (509 new listings) was much kinder to buyers than January 2024 (394 new listings) - a 22.6% increase! The market has been improving since the low of 2023 (309 new listings) and demonstrates a shift toward a healthier market. The Inner East Bay market is sitting at its highest “Months’ Supply of Inventory” for the month of January since 2012.
Demand
We’ve seen a 3.7% YoY decrease in listings sold (190 in Jan 2025 vs 197 in Jan 2024). Demand is strongly influenced by interest rates, and this minor decrease in sold listings is remarkable when one considers that both interest rates and prices have increased since last January. Rates averaged 6.69% last January vs 6.95% this January (a full quarter-point difference). Meanwhile, the median sold price has increased 6.4% YoY, and the average sold price has increased by 8.5%.
As ever, when referencing the market data chart, please note the sample sizes. Albany is one of only two cities that saw a decline in prices - but when we note that this is based on a sample size of only 2 listings sold this January, this decline takes on very little significance. The same can be said of Hercules and Kensington. More noteworthy is Oakland, which makes up over 50% of our total sample size, seeing a 5.7% increase in median sale price (as well as 10.6% increase in listings sold).
Reading Between the Lines
Increased supply, flat demand, higher borrowing cost, and…higher prices? What gives?
All home sellers expect to benefit from rising home prices but only the most attractive and/or best priced homes go into contract. Buyers cannot rush into contract on just any home. Insurance eligibility has been a growing issue for homebuyers, and homes with outdated systems (plumbing, electrical, HVAC) are increasingly hard to purchase. The costs of materials and labor have also seen sharp increases in recent years - coupled with higher borrowing, most buyers simply choose not to buy homes that require much work.
So what happens to the homes that aren’t selling? If they can afford to, these sellers are either pulling their listings from the market to re-list them when conditions are more favorable, or they are putting their homes on the rental market.
Whether buying or selling, how this data can inform your strategy for success will depend on what specific cities or neighborhoods you are operating in, as well as your personal circumstances. For a personalized consultation, reach out to us! We’re always happy to hear from you.
*Data is sourced from the MLS and considers detached Single-Family Homes
Mortgage news
MORTGAGE MUSINGS
By Evelyn Freitas | VP of Mortgage Lending at Guaranteed Rate NMLS 247578
Falling in love with the right loan February is all about love, and what’s more lovely than owning the perfect home with affordable financing? Whether you’re a homeowner thinking about refinancing or a prospective buyer searching for your dream home, the mortgage market is offering some interesting opportunities right now.
While interest rates saw fluctuations throughout 2023 and 2024, many experts predict a more stable and slightly lower rate environment in 2025. If you’ve been waiting for the right moment to buy or refinance, now is the time to check in and see what options are available. With home values remaining strong, homeowners may also have equity to tap into for renovations, debt consolidation, or even investment properties.
Another reason to celebrate? Many lenders are offering unique loan programs that could help you purchase a home with lower down payments, lower rates, or reduced mortgage insurance.
Just like in love, finding the right home and the right mortgage is all about compatibility. The right loan will match your budget, long-term goals, and lifestyle. I’m here to play matchmaker and help you navigate the options to find the perfect fit for you.
Let’s make this February the month you fall in love—with a mortgage that works for you! Contact me at evelyn.freitas@rate.com with any questions or to learn more about the options available to you.
We are The Home Factor, REALTORS®, serving clients in the San Francisco Bay Area, and beyond.
Declan Spring · Declan@thehomefactor.com
(415) 446-8591 · DRE#01398898
Denitsa Shopova · Denitsa@thehomefactor.com
(510) 220-1634 · DRE#02137852
Ehsan Habib · Ehsan@thehomefactor.com
(510) 730-4516 · DRE#02166899
GUIDING AND INSPIRING PEOPLE TO INCREASE THEIR FINANCIAL STABILITY AND LOVE OF LIFE THROUGH WELL DESIGNED HOME OWNERSHIP
The Home Factor • DRE#01398898 • Powered by Keller Willams • 2089 Rose St, Berkeley, CA 94709 • Declan@TheHomeFactor.com · (415) 446-8591