October 2022

Inflation is at a 40 year high. Mortgage rates have climbed from 2.65% in January 2022 to around 7% as of November 1st. In Southern California, 43% of the homes were considered affordable based on average wages and a 3% mortgage rate, but with higher mortgage rates, now only 16% of homes listed for sale are considered to be affordable. "Buyers and sellers are adapting to the new realities of the market," said Otto Catrina, President, California Association of Realtors, 2022. "As sellers adjust their expectations, well-priced homes are still selling quickly. And for buyers, there are more homes for sale, less competition, and fewer homes selling above asking price. In our city of Alameda, more homes sold in October over September and in fewer days. However, the average sold price for single family homes was 6% less than October in 2021. Condos and townhomes sold for 3% less in October 2022 than the same time as last year. Around this time of year Realtors often say, "I recommend selling in the Spring when the seasonal market is better." However, coming off of a two year 40% appreciation high, there really isn't much room for home values to go except flatten out or you guessed it, down. What works best for you? Hold it or sell it? Call us today to help with your unique situation.