August 2023

Property sales have fallen for the fourth time in five months, weighed by high mortgage rates and limited inventory that's driving prices higher. "Existing home sales were a little slower than expected in July, but the median sale price rose from a year earlier for the first time since January," said Bill Adams, chief economist, Comerica Bank. "House price declines are probably over in most U.S. markets, and prices are likely to rise modestly in the next few years.  

Another worrisome signal came from the US mortgage industry, with applications for home purchases tumbling to an almost three-decade low. Separate data showed new-home sales hit the highest level in over a year — as a surge in mortgage rates left many homeowners unwilling to move, keeping inventory on the resale market extremely limited.

In Alameda, we are recommending that buyers find and lock in that home while they can because when interest rates drop next year, bidding wars will become the norm again and homes will become unaffordable. Buy the house now using an ARM and refinance later. Sellers now is the time to plan for selling in the spring if you can wait that long. Speak to one of our advisors today for a free no cost no obligation consultation. 510-846-4687