Quarter 2 2023 Slower Summer Fun

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Second Quarter  2023
East Bay Market Update

Summer is finally here! The warmth, kids being out of school, and less people on the road has things feeling more upbeat and normal than our recent seemingly never ending rains, and the usual Bay Area hustle.  The recent reports of resilient consumers out spending and traveling has me believing that most people are really feeling like Covid is not a huge concern to them (though cases still are happening all the time) and they are no longer going to be restrained like the past few years.

The housing market has been interesting thus far this year.  We had a strong Spring that was a little slow to gain steam in January / February, but once Buyers realized that inventory was going to remain low and desirable houses would trade quickly in multiple offers for more than the asking price, it felt like a Spring market from 2018-2019 before the pandemic. There are still homes not selling well, or lingering, which is really a result of picky buyer's desire for turn key homes in great locations.  If our market trends are returning to normal, the 2nd half of the Summer is our seasonally slower time, and we can anticipate lower demand and resulting sales prices until Fall when people finish their Summer fun.

Low Inventory and High Desirability

The Bay Area continues to be a Seller's market with chronically low inventory and high desirability among Buyers.
In the inner East Bay corridor of Oakland and Berkeley, home sales in the second quarter were also down year-over-year, but 

increased in the second quarter to $1.15 million from a two-year low of $900,000 in the first quarter. The average single-family home spent 27 days on the market there before selling, and 76% sold above their list price in the second quarter.

East Bay Median Price Trends

Median home sales prices have been climbing rapidly from mid-winter lows, though remaining substantially below peak prices hit in spring 2022. The number of new listings coming on market over the past 12 months was the lowest in over 20 years. This is commonly ascribed to the “mortgage lock-in” effect. As buyer demand rebounded in 2023, this has contributed to upward pressure on home prices. Sales volume over the 12-month period was the lowest since the post-2008 recession. The lack of inventory is creating more competition for the small amount of listings coming on the market. 

Year over year, the 3-month-rolling Inner East Bay Median house sales prices in May 2023, $1,115,000 was down about 16.5% but has been climbing in recent months.

New listing and sales volumes have risen from their lowest point in mid-winter, but remain historically low. Average days on market DOM – measuring the speed at which sold listings went into contract – have plunged in 2023. The percentage of home sales closing over asking price has rapidly increased, and the average home sale is now selling well above its original asking price.

Luxury home sales remain considerably down from spectacular peaks seen at the height of the pandemic boom, but have been rebounding since late 2022. With bank crises, fed actions, inflation readings, and U.S. debt-default fears, interest rates have been volatile in 2023, with significant ups and downs. As of early June, 30-year, fixed-rate
mortgages are running about a quarter percent below 7% (but rates can change quickly).

Inflation

The most recently released general index saw a significant decline to its lowest reading in 2 years (though 4.1% is still considered a relatively high inflation reading).  Inflation is well down from summer 2022 peaks, but still has a ways to go before being comfortable (2-3%) in the Fed's eyes.

Mortgage Interest Rates

In its most recent meeting, the Fed decided to hold rates steady after 10 consecutive increases since March 2022, but according to the WSJ, "signaled they are leaning toward raising them next month if the economy and inflation don't cool more."  The chart below illustrates how volatile rates have been, and the ups and downs of what home buyers are feeling in the market as they navigate their purchase process. Rates recently fell a quarter point after recent inflation data.

Venture Capital Investment in the Bay Area

Though VC investment plunged in 2022, the Bay Area still receives the most of any region in the country. 

PG&E Throws Down

PG&E makes almost $1B commitment to downtown Oakland and completes new headquarters purchase.
Its great to see such commitment and investment to downtown Oakland, reminding us that among the doom and gloom surrounding downtowns, the Bay Area and Oakland will continue to attract talent and major investment.

East Bay Home Transitions

Our real estate and dedicated construction team had continued success this quarter helping several clients complete successful their preparation projects / sales along with purchases to transition into their next phase of life.  The trust and faith our clients have put in us continues to pay off.  We are pleased to report that all of our listings sold for more than anticipated, our projects came in at or below their anticipated budgets, and our clients' purchases were successful among multiple offer situations and we know they had the benefit of our extensive experience and knowledge to help guide them to an informed decision whether for investment or for their primary residence.

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

Coming Soon

 Oceanview originals 
west Berkeley

1921 9th Street

4 BD   3.5 BA   2188 SF   $1,495,000

Contemporary living in West Berkeley! Brand New Home conceived by renowned East Bay designer John Newton, featuring signature high ceiling, open floor plan, large windows, & abundant natural light over three stories. Open-concept living w/ a family room, dining room, kitchen w/ a center island & balcony encourage togetherness. 4 bedrooms (including 1 on first level w/ full bath provides separation for home office or guest suite) offer plenty of space & flexibility. Private outdoor spaces feature a patio, balcony, & a rooftop deck. Designed to the latest engineering & seismic standards, both homes come equipped w/ smart "Brilliant Home" System & touchpad, tankless water heater, hydronic radiant floor heating, & modern tech expected of a 2023 home. 

Currently Pending

Upper Dimond

3923 Whittle Avenue

3 BD   2 BA   1,768 SF   Listed at $1,259,000
PENDING

Soulful mid-century split-level home nestled in popular Upper Dimond District w/ peaceful creek. Seamless integration of contemporary style w/ nature. Lush, lovingly cultivated mature garden w/ flowering plants & fruit trees, create vibrant & fragrant oasis through the seasons. Inviting flagstone entry, enclosed redwood fence & raised planter boxes feels warm, welcoming & private. Spacious & versatile split level open floor plan w/ vaulted wood-beamed ceilings w/ abundant light & indoor / outdoor flow. Wood stove, built-in bookshelves & dual pane windows w/ clerestory elements add depth to living room. Vertical grain redwood trim, handcrafted redwood doors & other original details artfully blended w/ new acacia hardwood floors & mid-century touches throughout. 

Northwest Berkeley

1919 9th Street

4 BD   4 BA   2000 SF   $1,495,000
PENDING

Contemporary living in West Berkeley! A Brand New Home conceived by renowned East Bay designer John Newton, featuring signature high ceilings, open floor plans, large windows, & abundant natural light over three stories. Open-concept living w/ a family room, dining room, kitchen w/ a center island & balcony encourage togetherness. 4 bedrooms (including 1 on first level w/ full bath provides separation for home office or guest suite) offer plenty of space & flexibility. Private outdoor spaces feature patios, balconies, & a rooftop deck . Designed to the latest engineering & seismic standards, both homes come equipped w/ smart "Brilliant Home" System & touchpad, tankless water heater, hydronic radiant floor heating, & modern tech expected of a 2023 home. 

Recent Listings

Piedmont Avenue

4457 Howe Street

5 BD   4 BA   2426 SF  
Listed at $1,995,000
SOLD for $2,200,000
10% Over Asking 

Piedmont Pines

3033 Holyrood Drive

5 BD   3 BA   2917 SF  
Listed $1,359,000
SOLD for $1,760,000  
23% Over Asking 

Ivy Hill

819 East 28th Street

2 BD   2 BA   1212 SF  
Listed at $439K
SOLD for $585,000  
25% over asking

Fairfax - Oakland

5041 Fairfax Avenue

4 BD   3 BA   1959 SF 
Listed at $979K
SOLD for $1,305,000  
 25% Over Asking

China Hill

628 Montclair Avenue

2 BD   1 BA   1559 SF 
Listed at $895K
SOLD for $1,275,000    
30% over asking

Paradise Park

6117 Baker Street

4 BD   0 BA   1971 SF   
Listed at $1,095,000
SOLD for $1,300,000  
16% Over Asking

Recently Purchased

Southwest Berkeley

1340 Haskell Street

4 BD   2 BA   1,440 SF   $800,000

Southwest Berkeley

1330 Haskell Street

3 BD   2 BA   1,215 SF   $699,975

Glenview

4449 Park Boulevard

3 BD   2 BA   1,382 SF   $1,375,000

Outer Sunset

1519 47th Avenue

2 BD   1 BA   1,550 SF   $1,450,000

Northside

1770 Highland Place

1 BD   1 BA   1236 SF   $1,015,000

Allendale

4178 Culver Street

2 BD   0 BA   1,328 SF   $700,000

Leasing

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.

Rockridge

6387 Dana Street, Unit  2 

1 BD   1 BA       $2,295/mo

Rockridge

5223 Lawton Avenue

4 BD   3 BA   2050 SF   $3,995/mo

Piedmont Avenue

4464 Montgomery Street

2 BD   1 BA   1003 SF   $3,200/mo

Lower Bottoms

1519 Prescott Street

2 BD   3 BA   1240 SF   $3,500/mo

Who do you know who is looking to Buy, Sell, 
or Lease their property? 

Please let them know about our extraordinary approach and expertise to help add value to their real estate investments and make good decisions. Many of our clients are repeat or referrals, know the difference and reap the benefits.

Let's Chat

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

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.