Happy Monday with Dean and Crystal…
Hey there MW’s (Market Watchers) and welcome back to this week’s installment of Happy Mondays…which just happens to be coming out on Tuesday this week…blame it on supply chain issues…haha.
Would you care for some appetizers??? I like to call them ‘Tid Bits‘.
– Just binged “Selling Sunset” … The housing market is still #thriving with the boom being good for the US’s largest homebuilders like Lennar, Pulte Group, and Toll Brothers…but homebuilding has cooled since the peak of the pandemic…
– Solo: Being single in the US is more expensive than being in a relationship, even though more people are single or living solo than ever. Housing, healthcare, taxes, and Social Security all play a role.
Three strikes… and you’re (locked) out. Major League Baseball owners locked out players last week after failing to reach a deal with the players’ union.
-Fed Chair Jerome Powell said higher inflation could be coming in the wake of Omicron and the Central Bank may consider ending its bond-buying program sooner than the expected June end date.
So… what IS the 2022 real estate market shaping up to be like…?
The Thanksgiving week data is baked into the data now and it sure looks like the market is accelerating from where it was earlier in the fall. All signs in the first week of December are really looking ‘bullish’…
We are on our way to record low supply; there’s no sign of any inventory increases or buyer demand abating…go figure.
Last week, we had a big drop in inventory (due to the Thanksgiving holiday) to 350,483 homes in saleable inventory. We are still projecting to end the year under 300,000 homes in inventory.
Should this forecast hold true, the 1st and 2nd quarters are shaping up to be a really competitive season for homebuyers.
We had 50,000 new listings last week in the US. 17,345 (35%) fall into ‘immediate sales, or sales that happened within hours or days of being listed for sale. this indicator gives us an idea of the strength of the demand, which shows no signs of subsiding. This behavior, again, underscores the competitiveness of the Q1, Q2 markets in 2022.
Days on Market is another indicator that we see grow at this time of year, normally it would be up around 90-100 days. This year, we’re at one-half of that at 49 days and lower than last year at this time.
Last week, the median price of a single-family home dipped to $375,000 and the new listings also dropped to $329,990 and holding to our prediction of right around 10% annual price gains year over year.
Let’s Get Local………
– Castro Valley: This week the median list price is $1,200,000 which is the same as last week with the Market Action Index (MAI) at 91. This is an increase from last week’s MAI of 89. For Days on Market (DOM), I am going to change from Average Days on market to Median Days on Market which is at 14. Inventory is at 15, down from last week’s 21.
– San Lorenzo: This week the median list price is $874,900with the MAI at 90. The list price is an increase from last week’s $839,000 while the MAI is unchanged. Inventory has decreased to 5and median DOM is 7. Home sales continue to outstrip supply and the Market Action Index has been moving higher for several weeks. 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.
– San Leandro: This week the median list price is $792,000down from last week’s $822,500 with MAI up to 89. Inventory has decreased to 18 and median DOM is at 7. 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.
– Hayward: this week the median list price is $894,000, up from last week’s $850,000. the MAI is hovering around 87, inventory has decreased to 38 and DOM is at 25. I would repeat the same comments for Hayward that I used for San Leandro.
Danville: this week the median list price is $3,644,750, up from last week’s $2,800,000. The MAI is unchanged at 90, inventory is at 21 and DOM is at 105. We’re still in a seller’s market and watch for upward pressure on pricing if this trend continues.
Summary:
If you are a buyer, you’re probably ready to throw in the towel…don’t give up hope…last week, we helped two of our clients successfully be the prevailing offers on their first attempts at purchasing…(and they weren’t even the highest offers)! Interest rates are so low and with proper presentation of you as a well-qualified, pre-approved buyer with realistic terms, when you are in our capable hands, your chances for success are very good.
For you future sellers, the first half of 2022 looks to be very bright for your prospects of maximizing your investment. We will help develop a winning strategy for making your sale and purchase very reasonably doable. Failure to plan is a plan to fail...
If you’re thinking of a new construction purchase, here’s a bit of sage advice…‘TAKE YOUR REALTOR WITH YOU…’. Without going into a lot of detail (I’ll save that for another day)…let’s just say it’s like going into the Lion’s Den …alone.
We can help demystify the things that new construction companies want you to believe…let us hack the process with you.
So…once again…Happy Trails to You…Until We Meet Again…(Next Week)
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.
