Late May, 2022
As interest rates rise and summer approaches I am inspired to compile my thoughts on the market once more. Although COVID is not resolved (apropos check out this New Yorker article on that subject) we, as a populace, are shifting once again.
The longer I am immersed in real estate the more I see the theme of the collective unconscious emerging. We move as if like an organism toward very similar goals. When the pandemic was at its height, the stock market soared with the Fed’s intervention. In my East Bay market I witnessed tightening inventory, exceptionally high demand with a real disparity between two buyer profiles - those with budgets bolstered by stock portfolios and those who were not so fortunate. This polarity cultivated a sense of scarcity and nothing creates high prices like fears of scarcity. I witnessed a phenomenon in which almost any tactic worked to sell a home. For those sellers wise enough to know that it is always best to work with a stellar, local agent, they saw sales 40-50% over the list price.
In the last 2 months I have heard a familiar request, one I have not heard since “N95” entered my lexicon and that is the need for property close to BART, walkable to stores and yet the need for a Zoom room has not been mentioned in a while. Folks are getting back to the office, kids back to preschool, back to outings, cafés and the theater. The wants and needs of the buyer populace are shifting again and with it the focus narrows to specific and rarer homes.
Crisis sells newspapers, panic increases clicks and there is most certainly a bit of specious nail biting going on in the news. On the other hand, I am hearing from my buyers that their max budget has diminished and their sense of comfort with the market with it. Sellers too are feeling fearful that they missed their moment to maximize their profit as we see a massive uptick in travel plans this summer. Although this is always the case in July and August, even fewer eyes on a given home will translate to fewer offers. So, yes, I am seeing a manifestation of the economic reality but the shift in the collective consciousness of the buyer pool is also on the wind. Will this mean lower sale prices? Yes and no. Yes there will be what I call “opportunities” and no the market is not taking a real or actual down turn.
Come September I suspect that we will see a return to higher demand as we grow accustomed to interest rates, folks settle back into their new (old) work routines and with a renewed awareness of the persistent reality of limited inventory in the inner East Bay the laws of supply and demand will ultimately persist.
Timing the market is best left to the speculators. Homes are for living. Should we make decisions to buy and sell with awareness and caution? Yes - absolutely - but this is best done on a property by property basis with the guidance of your competent and well-grounded full-time, local realtor.
I am always here to talk these things through.
With love,
Sarah
PS This photo was taken the other evening at Pt Molate where I attended the annual Yes! Nature to Neighborhoods fund raiser - my annual $1,000 donation will send 2 kiddos to a life-altering summer camp experience - this is a program I am very proud to support - for more information see
https://www.yesfamilies.org/
Sarah Ridge - Realtor - 510-860-3435 - Lic#01990459 [email protected] www.sarahridgerealtor.com
1577 Solano Ave,
Berkeley, CA 94707
