Monthly report · No.9
THURSDAY, DECEMBER 5, 2024
We wish our clients, and our friends and family alike, a very happy and joyful holiday! We're grateful to have survived our first year of Home Factor-ing at Keller Williams and are looking forward to 2025 and helping more people!
Our holiday hours are: Call us!! We're here for you!
We are floored by the support and trust we receive from our community and we are deeply, deeply grateful for the referrals we have received. Our mighty team of 3 at The Home Factor helped 14 new homeowners in 2024, and we were successful in marketing and selling 11 listings. We are already hard at work on several listings for the new year, and, as a reminder, you can track progress or enjoy our before and after videos by subscribing to our YouTube channel. If podcasts are your thing you can subscribe to Declan's library by subscribing to his podcast. The newest podcast will be released later today and Declan will dive into the topic of "stepped-up basis" with attorney Loulena Miles.
Running our beloved real estate business almost exclusively by referral has continued to be the only possible way it can work. Without you and your support, speaking highly of us to others, and actively referring us to family, friends, and neighbors, we simply couldn't reach the clients we serve. We thank you. Our family thanks you!! Please keep us in mind as we head bravely into a new year. We are pleased to be a resource for you.
ENJOY YOUR HOLIDAYS AND HAVE A GREAT AND SAFE NEW YEARS!
2024 - that’s a wrap
By Declan Spring
Mortgage interest rates remained high in 2024, often close to 7% despite rate cuts by the Fed (this aspect of what influences mortgage interest rates caused all sorts of confusion!). Despite mortgage rates remaining high, residential real estate values in the East Bay also remained durably high in 2024, although values slipped a little this year over last. The average sold price point for single family homes in the Inner East Bay in 2024 was approximately $1.150M vs last year's $1.160M. Only time will tell if 2025 will see an increase in transactions and property value. We expect it will. In 2023 the number of real estate transactions was down by about 26% over normal. 2024 was better by about 7%.
state of the market
the housing factor
By Declan Spring
The housing market continues to slow down, in line with normal seasonal trends. We are seeing signs that the market is adjusting towards being a more balanced place. Compared to last November, there were 16.9% fewer New Listings in November 2024, but with 4.1% more Listings Sold.
Still, 2024 has been a year that has seen market conditions shift in favor of buyers to a higher degree than normal. Despite being a more favorable market for buyers, especially in terms of demand and price adjustments, many buyers remain so utterly fixated on rates that they are missing this opportune moment to engage the market. As a reminder: Buying property in a higher rate environment means taking advantage of lower price points, less competition, but with the absolute potential to refi later in a lower rate environment. Strategy is everything. Fixation with rates is an unwise trench to dig into.
Inventory has improved steadily through the year - the number of active listings peaked in September, and at the start of this December we had more active listings than any other December in the past 10 years. While 2024 has had similar challenges to 2023, we are seeing more sellers adjusting the list price of property in recognition of changing market conditions and often selling for less than they might have hoped for.
Since the election, many analysts are expecting interest rates to stay higher for longer - and this can impact sellers' behavior. Fewer sellers might decide to relist their underperforming 2024 listing in 2025 if they do not believe that market conditions will improve significantly in their favor. In many East Bay neighborhoods now is a great time to buy. For most neighborhoods, competition has rarely been weaker. Historic data however is abundantly clear that even without lower interest rates the market always grows more competitive for buyers in the first and second quarter of each year.
How the data looks in your particular neighborhood could very well differ from the whole city in general, or the trends of the wider region. If you would like to discuss what's going on in your pocket of the East Bay, or how this data affects your particular situation, please don't hesitate to reach out! 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
Exciting News: Loan Limits Increase For 2025 - Hello and Happy Holidays! I've got some great news to share for homebuyers and homeowners in the San Francisco Bay Area! Both conventional and FHA loan limits are increasing, offering more flexibility in our high-cost market. Although the limits go into effect on January 1, we are honoring them now, so it's not necessary to wait to take advantage of the new Timits!
The Federal Housing Finance Agency (FHFA) has raised the conventional conforming loan limit for one-unit properties to $806,500 nationwide. However, recognizing the higher home prices in areas like ours, the limit for high-cost regions, including several Bay Area counties, is set at $1,209,750.
Here's the breakdown by county - Alameda, Contra Costa, Marin, San Francisco, San Mateo, Santa Clara: $1,209,750. Napa: $1,017,750. Solano: $806,500 Sonoma: $897,000.
The Federal Housing Administration (FHA) has also increased its loan limits to align with the conventional limits. In high-cost areas, the FHA loan limit for one-unit properties is now $1,209,750. These increased loan limits can make it easier to finance a home without requiring a jumbo loan, which often comes with stricter requirements and higher interest rates. Whether you're looking to buy a new home or refinance your current mortgage, these changes could provide more favorable terms and expanded opportunities.
Curious about how these new limits impact your homeownership goals? Please reach out to me at evelyn.freitas@rate.com and let's talk! I'm here to help you navigate these changes and find the best financing options tailored to your needs, both short- and long term. Let's make your homeownership dreams a reality in 2025!
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