Quarter 1 2023, Spring Market Blossoms

From your friends at

Happy Spring!

Thank goodness we finally are getting a break from the rain and seeing the sun again! The reminiscent tree blossoms have finally been sprouting, filling our neighborhoods with the colors of Spring. Hopefully this also means less wildfires and drought related impacts that Californians have endured the past few years, but we must also remember that the weather patterns and climate change is really happening around us.

Also, 2023 seems to feel more normal and familiar as we finally seem to be at a spot where people's work and school patterns are more settled into how life will live in a post Covid world (not that it's over) and what that will mean. The lasting impacts are surely felt by those who lost loved ones as well as in our downtowns and commercial districts as consumer habits changed from office to remote or hybrid work routines and ordering on Amazon and the like leading to more empty storefronts and office buildings in certain areas.

Since our last market update to you in January, the market has taken an interesting turn. The banking crisis seemed to eclipse the inflation crisis and buyers are seeing opportunity – slightly lower interest rates (than a few months ago) and a dip in home prices (from the stratospheric heights of 2022). From our experience – and that of many of our colleagues – buyers are coming out in droves to view property.  However, there are not many homes on the market to see! We are seeing packed open houses, multiple over asking offers, calls from buyers’ agents about possible listings, and inquiries about off-market opportunities. Agents are having a hard time finding appealing homes for their eager (and highly qualified) buyers.

If you had been on the fence about selling with all the uncertainties floating around (and buyers disappearing!), then now would be a good time to revisit the market. Demand for the homes that our team have prepared for the market is as hot as we’ve seen (from a seller’s perspective) since early 2022. Our real estate team continues to outshine the rest and the results of our recent 5 listings (Below) to help to tell the story.

Spring Selling Season 
The Market Continues to Recover, But with Many Dynamics at Play

Buyer demand continued to rebound from the depths of the mid-winter slowdown in activity. The number and percentage of listings going into contract, and overbidding percentages continue to climb, and days-on-market to drop as the spring selling season gained traction. Buyers generally shrugged off the local banking crisis, the main effect of which, so far, has been a significant drop in interest rates in the 4 weeks after SVB collapsed.

Though conditions have improved considerably, the market remains significantly weaker on a year-over-year basis, and across the Bay Area, median home sales prices have generally declined. However, it’s worth remembering that the market in Q1 2022 was severely overheated, and approaching the peak of a historic, 10-year boom. This will distort many year-over-year comparisons.

The number of new listings coming on market continues to be extremely low, as many potential sellers hold off from listing their homes due to the doubling of interest rates since early 2022:  This constitutes a huge factor in market dynamics and is holding back sales activity.

Across the Bay Area, year-over-year declines of sales in the highest price segments have typically outpaced declines in less expensive home sales, and their demand-to-supply ratio – the number of sales compared to the number of listings for sale – is much weaker. Luxury home sales have been hit harder since the market correction began in mid-2022, though they too have been rebounding in 2023.

Inner East Bay Market Report April 2023

Where are people moving from?
 And where are they moving to?

Sellers are often interested in where buyers are most likely to come from. These charts from Patrick Carlisle provide some general answers, though people moving can also be tenants, college students, agricultural workers and so on.

"Buyers have accepted 6% mortgage rates as the new normal."

- Compass CEO Robert Reffkin, CNBC

Watch CNBC segment

Compass CEO Robert Reffkin's Thoughts On the Spring Market

Buyers have accepted 6% mortgage rates as the new normal.

Mortgage purchase applications have increased 8 out of the past 10 weeks.

There is a lack of inventory, however, inventory is 60% higher compared to this time last year.

Buyer demand continues to be strong, with home prices up in both March and February sequentially.

Open house traffic has picked up dramatically, with multiple offer situations becoming more common in markets across the country.

Take a Fresh Look at Older Listings

In the Bay Area, there are: 
2800 listings with Days On Market (DOM) over 30 days, 
1700 over 60 days, 
1100 over 90 days, and 
1500 listings expired/cancelled in the past 2 months. One suspects all those sellers still want to sell their homes. The only reason most haven't: The list price.

The silliest reason for not writing a low offer:  
Fear of "offending" the seller or listing agent. 

Never assume you know what another party will accept once a signed offer is put in front of them. (No one knows, including the listing agent.) Stop paying so much attention to asking prices and thinking something is wrong with the property. Take a fresh look at older listings. The real question for buyers is, "At what price would this home work for you?"

Have any questions about the right house for you? Or looking for a strategy on how to get a home for the price you want?

Email Us with Questions

Recently Sold Listings

Upper Oakmore

4229 Fruitvale Avenue

3 BD   2 BA   1657 SF   
Listed at $1,279,000 
Received  3 offers
Sold for $1,575,000  18.8% Over Asking

LEVEL IN Mid-Mod Hillside Oasis. Intriguing 3 bed 2 bath view home refashioned w/ modern design & technology yet retains 1948 character. Tucked in Oakmore, 1 of Oakland’s hidden gem neighborhoods. Terraced yard w/ mature landscaping creates private retreat w/ multiple hangout spaces. Covered deck, natural stone patio, plus a real CEDAR HOT TUB! 

Piedmont Avenue

4457 Howe Street

5 BD   4 BA   2426 SF  
Listed at $1,995,000 
Received  1 offer
Sold for $2,200,000  9% Over Asking

Newer home built to latest seismic & energy efficiency standard is just steps to Piedmont Ave. Thoughtful detailing brings warmth & charm of traditional architecture into 21st century. This home is one of a kind, featuring 5 BR, 4BA in an open floor plan w/ indoor / outdoor flow through expansive folding doors opening to lush garden. 

Ivy Hill

819 East 28th Street

2 BD   2 BA   1212 SF   
Listed at $439K 
Received 20 offers
Sold for $585,000 25% Over Asking

Perched on the top floor of a quaint 5 unit condo community this 2 bed/2 bath treehouse unit brims with natural light and charm. An updated kitchen boasts quartz countertops, stainless steel appliances and a convenient passé-plat that allows for chatting and entertaining friends and family while unleashing your inner chef. Relax as ample natural light overflows from room to room through the large windows and vaulted ceilings throughout. The sizable balcony with hillside and city views is the perfect setting for a morning cup of joe, an intimate summer dinner party or even opening the tall sliding doors and enjoying the indoor/outdoor flow on a sunny afternoon. 

Fairfax - Oakland

5041 Fairfax Avenue

4 BD   3 BA   1959 SF   Listed at $979,000
Received 4 offers all above Listing price
-PENDING-

French Country meets modern chic in this totally reimagined gem. Ample natural light greets you as you make your way through the spacious three level layout that brims with thoughtful designer details. The gourmet chef's kitchen boasts composite granite countertops, smart stainless steel appliances, Possini light pendants and an open dining layout that is perfect for chatting and entertaining friends and family while unleashing your inner chef. Four perfectly situated bedrooms including a primary suite, three well designed baths and a bonus rumpus room all allow for multi-functional living to shine. 

Recently Purchased

Trestle Glen

1230 Holman Road

3 BD   2 BA   1796 SF   $1,700,000

Oakland

5832 Nottingham Drive

3 BD   2 BA   2267 SF   $1,650,000

Southwest Berkeley

1340 Haskell Street

4 BD   2 BA   1440 SF   $800,000

Southwest Berkeley

1330 Haskell Street

3 BD   2 BA   1215 SF   $699,975

In addition to our portfolio of sold listings, we have been busy helping people both Buy and even lease their rental homes / units in this market, and enable them to leverage our investment / construction experience and dedicated construction team to add value to our client's properties.

If you or someone you know is looking for a sweet
 2 Bedroom /1 Bath unit 
with secure parking 
in a walkable location 
close to Piedmont Ave... 
 Be sure to check out our active listing for lease below. 

4464 Montgomery St. Piedmont

Our focus is on leveraging our dedicated construction team & investment / development experience to add value:
 -helping Sellers before going on the market with our eye for detail  & opportunity OR
 -helping Buyers understand what they are purchasing and get comfortable in their homes after they buy.
 
Please reach out if you or someone you know is considering buying or selling. We are sure our team can add exceptional value to the effort.

Email: Andrew.Pitarre@compass.com
Phone: (415) 342-9950
6211 LaSalle Ave
Oakland, CA 94611

Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.