Single-family home and condo inventory rose slightly month over month, as new listings outpaced sales, but far fewer listings came to market than is typical this time of year. Notably, new condo listings decreased month over month. Higher interest rates have dropped incentives for potential sellers to enter the market, since sellers usually also must buy a new home. Homeowners either bought or refinanced recently, locking in a historically low rate, which means they aren’t selling and fewer listings are coming to market. Moreover, many potential buyers were priced out of the market as interest rates rose; however, interest rates have been higher for enough time that buyers are more comfortable re-entering desirable markets like the East Bay. Currently, buyers aren’t facing anything similar to the hypercompetitive 2021 market, but we will likely start to see more competition among buyers in the spring. New listings fell by 40.5% year over year, while sales declined 33.7%. We still expect some inventory growth in the first half of 2023, but inventory will likely remain low.

 

Local Lowdown Data