September 2022 Market Update
In early August, we actually saw a bit of a rebound with renewed buyer interest in the market, and increased visits to open houses. This was primarily due to a number of issues: Price reductions, less competition, the drop in interest rates, and the dramatic recovery in stock markets. Additionally, there was a small rebound in SF sales in August data; a month that usually sees a tick down – though sales volume was still well below 2021.
As you are aware, the recent months have brought a great deal of volatility in the economy and a level of uncertainty in the real estate market. But the facts are that there are still many opportunities for Buyers including a dip in prices, an increase in inventory and the opportunity to obtain lower mortgage rates by buying down the rate or choosing an adjustable loan.
If you are thinking of selling, it is not too late. The facts are that in most neighborhoods the median home price is higher than it was a year ago and your equity position has most likely increased in the last 12 months. Demand is still strong in most segments, despite more tempered pace of sales.
- There is usually a dramatic jump in new listing activity after Labor Day
- September is typically the single month with the highest number of new listings, which then fuels autumn sales.
- Interest rates have increased again and stock markets declined once more: They continue to see substantial short-term volatility and it remains difficult to confidently predict their future movements and effects on real estate markets.
- The next major indicator of buyer and seller psychology and market dynamics will be what occurs during the next 2 months of the autumn selling season, prior to the mid-November to mid-January holiday slowdown, typically the slowest market of the year.
Overview of the Bay Area Year-over-Year:
- Home-price appreciation rates and overbidding statistics have continued to drop.
- Days-on-market has started to clim
- The number of new listings was lower year over year, and the number of active listings for sale declined, though still significantly higher than last year.
Sources: Compass Market Stats, Sept 2022