Happy Monday with Dean and Crystal…

Hey there, Market Watchers…
It is another Monday, and it is that day of the week where we take a look at the behavior of the housing
market inventories and other leading indicators…
Are you ready for a TidBit or two?…

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  $245M+ worldwide, and not a moment too soon for theatre chains such as AMC.
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  customer. Can you guess why? (email me with the correct answer and I’ll send you a $25
  Starbuck’s card) …

Let’s look at the US Real Estate Market and how it performed last week:

Home prices are climbing now, as we would expect for this time of year…
The median price of a single-family home is $394,500…up 1% from last week. Think about that, 1% in
one week…and 12% from last year at this time.
Home prices peaked at $399,000 in April of last year before the downward trend for most of the
remainder of the year.
Last week, the price of the New Listings was at $399,000…up only $100 from the previous week and
clearly demonstrating that demand is still there.
Inventory has fallen to 241,000 homes, unsold and available for sale. Each week we seem to list
approximately 75,000 homes that hit the market and we sell several thousand more than that and
there’s no apparent slow down or reversal of this trend in sight.
Projection: this could likely continue through the end of May and maybe end up with somewhere
around 220,000 available homes for sale. This is assuming that interest rates will continue climbing,
even though they trended downward because of the unrest in Eastern Europe.
The immediate sales phenomenon is still not showing any signs of slowing down either with almost 32%
of the newly listed properties being sold within hours or days of being on the market. We are still in a
world of intense buyer competition and tight supply.
Projection: Even with rising interest rates, it will take months before this slows down and we pretty
much have strong growth built into the market for most of 2022, meaning, it could early 2023 until we
see any price moderation start to appear.

Hey, Dean…shall we…Get Local?

Here is what happened in our local markets last week:
Castro Valley: This week the median list price for Castro Valley, CA is $1,850,000 with the market
action index hovering around 89. This is less than last month’s market action index of 95. Inventory has
increased to 19 and the median days on market (DOM) is now at 7. Market appears to have begun to
cool. As we’re still notably in the Seller’s zone, prices have not yet adjusted. If the market continues to
cool, then expect prices to follow lower. It may take a few more weeks of slack demand for prices to
reflect and begin to fall. Expect this condition if the index falls to the Buyer’s zone.

San Lorenzo: This week the median list price for San Lorenzo, CA is $800,000 with the market action
index hovering around 94. This is less than last month’s market action index of 97. Inventory has
increased to 5 and median days on market is effectively 0. The market has started cooling and prices
have been flat for several weeks. Since we’re in the Seller’s zone, watch for changes in MAI. If the MAI
resumes its climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s
zone, watch for downward pressure on prices.

San Leandro: This week the median list price for San Leandro, CA is $882,000 with the market action
index hovering around 89. This is less than last month’s market action index of 92. Inventory has
decreased to 18 and median days on market is at 0. The market has started cooling and prices have
recently plateaued. Since we’re in the Seller’s zone, watch for changes in MAI. If the MAI resumes its
climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for
downward pressure on prices.

Hayward: This week the median list price for Hayward, CA is $875,000 with the market action index
hovering around 88. This is about the same as last month’s market action index of 88. Inventory has
increased to 43 and median days on market is at 0. Home sales continue to outstrip supply and the
Market Action Index has been moving higher for several weeks. This is a Seller’s market so watch for
upward pricing pressure in the near future if the trend continues.

Danville: This week the median list price for Danville, CA is $2,774,400 with the market action index
hovering around 79. This is about the same as last month’s market action index of 79. Inventory has
increased to 24 and median days on market is at 0. In the last few weeks, the market has achieved a
relative stasis point in terms of sales to inventory. However, inventory is sufficiently low to keep us in
the Seller’s Market zone so watch changes in the MAI. If the market heats up, prices are likely to resume
an upward climb.

We are certainly in a different time for real estate. In the 34 years I’ve been in the real estate business,
I’ve never seen anything like it. Crystal and I get calls daily from friends and clients asking about the
value of their homes and whether they should sell.
Our answer is always the same, Do Not sell your home if you do not have a plan (to downsize, upsize,
invest, or move out of the area. With the lack of supply and inflation, the worst thing you could do is sell
your home and let your money sit in the bank.
Real Estate is still one of the best hedges against inflation
If you have thought about taking advantage of the market, but are not sure of the best plan, feel free to
call either of us and put our experience to work for you. We are happy to provide you with a realistic
value for your home and how the record appreciation has affected the value of your home.
Until next week, stay safe and stay healthy.

Warmly , Dean Souza

Dean & Crystal Souza
Realtor | Broker Associate
Century 21 RE Alliance – Souza Team
homes@souzateam.com
510-881-1761
DRE 00967442 | 01448392
Focused on the Success of Your Move

This is not intended to solicit properties or persons under contract.