The East Bay real estate market continues to be a strong seller’s market, extending a trend that has persisted for years now.

Inventory is down, prices are up, and homes continue to sell quickly. That is where we stand right now.

But... the start of the second quarter has seen a sharp rise in interest rates, with the average 30-year mortgage now topping 5%. This may dampen buyer demand in the East Bay, which could cause prices to end their years-long upward spiral. But it could also further decrease inventory as sellers scratch plans to sell so they can hold on to the historically low rates they likely enjoy. This could sustain prices.

So it’s too early to tell what lies ahead, but it is indisputably the case that new dynamics are at play for home buyers and sellers in Oakland, Berkeley, and beyond. This is a situation that requires me to stay close to market signals, day-by-day.

Things are, as they say, developing.