When you are in real estate, the number one question people ask us is, “How is the Real Estate Market?”
As your local Realtor helping clients buy and sell real estate in the Tri-Valley, as well as someone who owns real estate, I’m always keeping up-to-date on the trending market.
The one statement I can say for sure in regard to the question, “How is the real estate market?” is that it is constantly changing.
Changes in Real Estate from the Last Three Years
I’m not sure that anyone would have predicted the craze in the real estate market for the last three years. With people working from home and able to move away from the cities to more rural areas where they could afford more home and more land at historically low interest rates, the number of home sales skyrocketed.
As the economy recorded higher interest rates, inflation, and a looming recession, as people lost jobs and money in a volatile stock market, and as world events made headlines, the market slowed.
People decided not to move, as higher interest rates and drops in home prices made less economic sense.
Our Real Estate Market is Different than the Housing Market in 2007 and Beyond
The infamous Housing Market Crash that started in 2007 when homeowners defaulted on home loans they couldn’t afford is different from today’s market slowdown.
Banks were handing out home loans without income verification, often putting people into financial situations that were difficult, if not impossible, to afford.
Today’s loan restrictions are much more regulated, relieving the fear of another Market Bubble crash. In addition, the amount of down payment is higher, creating a more manageable mortgage.
The Tri-Valley’s Current Real Estate Market
According to David Stark of Bay East, Tri-Valley home inventory is up year-over-year. Let’s recall that Silicon Valley jobs increased last year, allowing more people to afford more expensive homes.
Now that Silicon Valley is cutting jobs, people may not be able to afford their homes anymore; or, in some cases, the return to work lifestyle means that people are moving back to the city to be closer to their jobs.
Still, others may be moving out of the area to more affordable homes. In any case, there is a lot of inventory, a swift change from the days when homes were swept off the market hours after being put on or sometimes before they were put on.
Inventory affects Pricing
Following the trajectory of real estate, more inventory affects pricing. With more inventory on the market, rising interest rates, and a still uncertain economy, home prices in the Tri-Valley have dropped since last January.
Number of Homes Sold in the Tri-Valley Area
As can be expected, with so much economic uncertainty, the number of sold Tri-Valley homes is lower this January than it was last January. Buyers are being picky, holding tight, and choosing homes that are move-in ready.
Some Good News in Tri-Valley Real Estate!
The overall picture of Tri-Valley real estate can appear gloomy. However, The Gamache Team has come across homes that are still attracting multiple offers, some even over asking price. The key is to market, price, and negotiate an offer that is attractive to buyers as well as sellers.
The Gamache Team Has Been Through Many Real Estate Changes
To quote the expression, “This is not our first rodeo,” The Gamache Team is no stranger to volatile real estate housing statistics.
With over 50 years of experience under our belts, there isn’t a market we haven’t seen and conquered.
Our advice to you is to consult with a trusted professional who understands your real estate needs and listens with a trusted heart and mind. When you find a Realtor who puts your needs above their own, who can market your property to sell or find you a property in the neighborhood you want with as many of the features as you want, then you know you have found the right Realtor.
If you are thinking of buying in the Tri-Valley or selling your Tri-Valley home, consider working with The Gamache Team. We have the results and clients to back up our years of experience in any market.