We are currently seeing a shift in the real estate market, call it a correction. A nationwide listing site reports that a record 15% of sellers dropped their asking prices during the four weeks ending May 1. Hi, I’m Tanja Odzak, Our East Bay Home brokered by eXp Realty.
This just means that sellers need to be more aware that the market is changing. This is most likely due to interest rates increasing, and mortgage rates being extremely volatile. However, we need to remember that people are always going to need to buy and sell. People will move in and out of their state, people will get married, they will get divorced, people will have babies and need bigger homes and people will need smaller homes. People will still need to buy, but the housing market is just normalizing a bit. So it’s important that we are aware and realistic as to what that means.
Let’s focus on what’s happening locally. Currently on a Local level we are seeing the market as being very volatile. Just a few months ago the second we put a home on the market, the calls were coming in like crazy and there were SO MANY offers on homes and prices were being bid WAAAAAY OVER what the home was valued at. We underprice out here, so I don’t even care what the list price is. In Oakland when I pulled a report on how many active homes there were in April there were 267 (two hundred sixty seven) Active homes on the market, as of now the time of this recording we currently in Oakland have 392 (three hundred and ninety two ) active homes, that is a 47% forty seven percent increase in inventory in Oakland within a couple months, and its helping the market to start to balance.
Now, we are seeing the market creeping towards a bit more stability and become a bit more normal for us. The time it takes a home to sell which we refer to days on the market.. well, it is still a bit similar. From January to April the typical median days on market was 12/13 days. Now we are at 15/16 days on market), so just up a tad. We Are not seeing crazy amounts of multiple offers… and remember, we still UNDERPRICE quite a bit out in the Oakland/Berkeley East Bay Area… but sometimes things are not going as high as previously expected. well, it’s not as common.
Depending on location, condition, and marketing of a home. It’s not a given that buyers are going to remove the appraisal, loan and inspection contingencies. Again, the market creeping towards a bit more stability and normalizing. It’s important to know these factors when listing your home and thinking about pricing and home value. Not being realistic will end up costing you money. It’s more important now w/ a more normalized market to hire an experienced agent who knows the market and who knows how to market your homes the way it should be…. to get you the most amount of exposure which will obviously get you more money on the sale of your home. The good news is According to Freddie Mac. “Homebuyers continue to show resilience even though rising mortgage rates are causing monthly payments to increase by about one-third compared to a year ago.” We have the highest interest rates since 2009 and there was also a rise in adjustable-rate loans, but according to the Mortgage Bankers Association purchase applications rose two weeks in a row. Which means buyers are still out there. And Nationally in the same period, 56% (fifty six percent) of the homes sold for an average of 2.8% (two point eight percent) above list price, which again is another record.
Reach out to me and I can help walk you through what it would look like to sell your home.
And ask me about my tiered home selling plans where you get to pick which real estate services you want and the fee you pay offering you simplified and transparent choices! Tanja Odzak, Our East Bay Home AND eXp Realty and I’m always here to help. Reach out anytime even if you’ve just got questions.
I’m a Top Producing Realtor® in the OAKLAND / BERKELEY / EAST BAY AREA. I’ve been in the San Francisco East Bay Area since I came up to do my undergrad at UC Berkeley (a long time ago!), with a short stint at UC Davis while getting my Master’s. I take my duties as a Realtor® and Fiduciary very seriously, I enjoy educating my sellers and buyers along the way. Putting People, Before Profit.
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