Rising interest rates continued to affect supply and demand in October, but early November saw major changes in economic indicators.
The height of the fall selling season was dominated by global conflict, falling stock prices, and interest rates that soared to 23-year highs, further deterring buyers in need of capital and making sellers reluctant to abandon their current loan terms. Then, on November 1, the October employment report was released, the Fed extended its pause on interest rate hikes, and the Treasury Department issued revised guidance for upcoming bond sales. And by November 3, the stock market recorded its best week of the year and interest rates recorded a near-record decline. The housing market typically begins its major holiday slowdown in mid-November, with listings and sales activity dropping to annual lows. Given the volatility that characterizes the economy and political landscape, it is too early to speculate on how these changes will play out in the coming days, weeks, and months. Ideally, interest rates will continue to normalize and consumer confidence will recover heading into the new year, significantly improving both the affordability of homes and the conditions under which homeowners are considering selling.
Even with the expected holiday slowdown, sellers of attractive, well-prepared and reasonably priced homes are likely to receive multiple offers and sell quickly. Qualified buyers are still actively looking to purchase (loan or all cash). For buyers, mid-winter typically offers less competition for properties and more opportunities to aggressively negotiate the price of unsold properties. For those who remain in the competition, it's a great time to buy.
This report reviews trends in home prices, new and active listings, sales velocity, overbids, listings going into contract and sales volume for both the mainstream and luxury markets. We also updated our Bay Area home price chart and map, and added more detailed data on current values and market trends for cities, towns and other submarkets within the region.
To access monthly market updates by Bay Area region, click on the links below: