In the second half of 2022, buying power diminished due to a rise in interest rates. As a result, the number of homes that sold dropped 47% compared to the same period in previous years. In many ways our local market slipped into a stalemate.
But, by the start of this year, interest rates stabilized, having dropped a full 2% from their peak. Buyers are returning to the market with a renewed desire to purchase and the stalemate that we experienced last fall has loosened up.
With buyer demand increasing, we turn our attention to the supply side of the equation.
The supply of homes for sale so far this year, is noticeably reduced and is expected to continue to be low throughout 2023. If the inventory of homes for sale continues to be diminished, we will see upward pressure on price as buyer compete for fewer and fewer homes.
Watch Alissa’s video to learn more about the supply of homes for sale in the East Bay and the various pools of inventory that drive our local market.