April 2022

What we are seeing in Alameda is a growing inventory of properties, less buyer demand and longer days on market. While the perfect properties still command multiple high offers, the current market is now a mixed bag. AS-IS properties that have deferred maintenance or are considered "outdated" have fallen out of favor with today's buyers as mortgage rates continue to rise, making homes less affordable. Mortgage applications have been falling from the 12-year highs as interest rates have climbed as high as 5.41% according to daily quotes. As a result, new purchase applications have dipped, not just below 2020 and 2021, but also below pre-pandemic levels for the first time since the initial shelter in place orders were issued more than two years ago. This suggests that, although the current closed and pending sales figures remain robust, higher rates and slower economic growth is just starting to appear as of May 1st.  This shifting market from a seller's market to a neutral market is exactly what the Fed wants. Beware home sellers, please do not expect the high flying sale prices to continue for much longer.