Tri-Valley & South Alameda County - Real Estate Market Report JANUARY 2024
Tri-Valley Monthly Market Report
Median House Sales Price by Quarter:
- The median house sales price for Q4 2023 was up by approximately 8% from Q4 2022, which indicates a recovering market after a peak in Q2 2022. Despite the seasonal and quarterly fluctuations, this upward trend suggests that market conditions have been improving.
Annual Sales Volume:
- In 2023, the annual sales volume in Alameda County decreased by about 26% from 2022. This significant drop in sales volume could be attributed to a combination of factors such as higher interest rates and economic uncertainty, which typically lead to a cooling of the housing market.
Mortgage Interest Rates:
- Mortgage interest rates in 2023 have shown volatility with a peak on 10/26/2023 at 7.79% followed by a decline towards the end of the year. As of December 28, 2023, the weekly average 30-year interest rate was at 6.61%. The high rates earlier in the year likely contributed to the decreased sales volume as higher borrowing costs tend to reduce buyer demand.
Active and Coming-Soon Listings:
- The number of active and coming-soon listings on January 1, 2024, was extremely low, with only 311 listings, which is a decrease from previous years' figures on the same date. This low inventory could create a seller's market where demand outpaces supply.
Recommendations for Buyers:
- Monitor interest rates closely as recent trends show a decrease, which may provide more favorable loan conditions.
- Take advantage of the current low inventory by being prepared to act quickly on desirable properties due to potential competition.
- Consider negotiating power as the market is showing signs of recovery; however, the low sales volume from the previous year might still give some leverage in negotiations.
Recommendations for Sellers:
- With low inventory and a recovering market, sellers may find it advantageous to list their properties now to capitalize on the lack of competition.
- Price properties competitively to attract interest in a market that has seen recent volatility in sales volume and prices.
- Be prepared for potential quick sales, but also be aware that the market's recent performance may bring cautious buyers.
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