Monthly report · No.3
THURSDAY, JUNE 27, 2024
There are at least 5 (maybe 7 now) new murals on the Ohlone Greenway between Manila Avenue and Blake Street in El Cerrito. A great reason to take a Greenway stroll! Photo credit courtesy of mural activist Rachel Melby @thelittlehill
the state of the market
The Housing Factor
By Ehsan Habib
May of this year saw a substantial (24%) increase in new listings in the Inner East Bay, compared to May of 2023. While this is a step in the right direction for buyers, we are still struggling to find enough inventory to meet buyer demand. In the 5 years before the pandemic, the average number of new listings for the month of May was 749. We’re not quite there.
Elevated interest rates and stubbornly high prices have kept many buyers on the sidelines - yet we are still in a sellers market with ample buyer demand. The monthly absorption rate sits at 49.9% - meaning there is a 2 months supply of housing currently on the market.
While sale prices are up Year-over-Year, list prices are actually lower. This suggests that the predominant pricing strategy of “list low to sell high” has only grown more pronounced. As you know, Real Estate markets are granular and hyper local.
If you would like to discuss what is going on in your neighborhood, or would like to see custom data reports, please don’t hesitate to reach out.
Mortgage news
Mortgage Rate Musings
By Evelyn Freitas | VP of Mortgage Lending at Guaranteed Rate NMLS 247578
At the year’s midpoint, many people are wondering when the Federal Reserve will be reducing the benchmark Fed Funds rate, which has been held at a 23 year high of 5.50% since July 2023, and where mortgage rates might be headed. If you're considering buying or refinancing a home, this information will be important to your decision-making process.
This week, several Fed members made comments on the economy, and it’s no surprise that their opinions diverged. President Goolsbee noted cooling in the economy, citing rising unemployment claims and slower consumer spending. President Daly echoed these sentiments, suggesting that the possibility of a recession can't be entirely ruled out and a rate cut may be called for. Governor Cook also seemed to favor a cut, pointing to progress on inflation and a cooling labor market, saying a reduction in the level of policy restriction is appropriate to maintain economic balance.
On the other hand, President Bowman called the labor market's strength a double-edged sword, simultaneously supporting economic growth and contributing to inflationary pressures. These comments suggest that while rates are not expected to plummet, they are likely to remain relatively steady, with minor adjustments as the Fed continues cautiously.
Of late, mortgage rates have shown greater stability after a period of fluctuation. The average rate on a 30-year fixed mortgage is 6.87%, down from a high of 7.79% in October 2023. For homebuyers, this relative rate stability presents an opportunity.
I'm here to help you navigate this environment for your best benefit. Whether you're a first-time homebuyer, looking to refinance, or just curious about the market, feel free to reach out to me at 510-501-8473 or Evelyn.Freitas@rate.com to see how his information applies specifically to you.
Local Spotlight
Annie’s Annuals
Team Feature
Join staff at Annie’s Annuals for a FREE talk on transforming that tricky little space between the sidewalk and the curb, often called the “hellstrip.”
Gardening in this spot can be challenging—there’s usually no irrigation, and plants can get stolen, vandalized, or trampled by people and dogs. But despite these challenges, there’s a lot of joy in beautifying this public space and making your neighbors smile. For some, it’s the only garden space available. In this talk, Ellyn will discuss plant choices, materials, and design tips. Attendees will leave feeling inspired and ready to turn your hellstrip into a little piece of heaven!
Don’t miss out on this opportunity to learn and connect with fellow gardening enthusiasts. June 30 @ 11 a.m. - 12 p.m. Annie's Annuals Nursery is located at 740 Market Ave. in Richmond, CA
spotlight
the home factor recommends
By Denitsa Shopova
A pest inspection (properly named a Wood Destroying Pests And Organisms Report) includes a search for bugs and other creatures that can cause damage to the structure of your property, a health hazard, or both.
Pest inspections are a normal part of the home buying and selling process, but when people settle into their home they typically forget about this type of inspection until the time comes to sell. It’s not unusual for people to be taken aback by the inspection findings when they go to sell property. After all, these things are silent and go unnoticed. Do you know what kind of wood destroying pests have taken up residence in the crawl space and floor joists of your home or in the framing?
We recommend home owners get a pest inspection every 5 years and our preferred vendor is GTinspects.com. Let them know where you got their name from!
Industry news
UPDATE ON the realtor® Settlement
By Declan Spring
The real estate industry is on the verge of change. New rules around commissions are set to take effect in late August. The media has not reported accurately on the proposed changes. In anticipation of the proposed changes the forms that we use day-to-day are in the process of revision. On June 24 the Residential Purchase Agreement ballooned an additional 3 pages from 14 to 17 pages. The California Association of Realtors® added an additional 3 page form to accommodate the proposed new rules around broker compensation. It’s beginning to look like the changes are going to make an already difficult and stressful process even more tedious and uncertain.
Declan is gearing up to bring this topic to his podcast audience. “Let’s Talk, with Declan Spring” will be making its video debut in August to coincide with this extraordinary industry moment.
The Home Factor • DRE#01398898 • Powered by Keller Willams • 2089 Rose St, Berkeley, CA 94709 • Declan@TheHomeFactor.com (415) 446-8591