Market Minute
Mortgage interest rates have been a major factor influencing the real estate market this year, adding an element of unpredictability due to their volatility.
In February, rates trended downward, reaching a low of approximately 5.8-6%. This dip encouraged a surge of buyers, coinciding with the arrival of new inventory on the market.
However, over the past few weeks, mortgage rates have risen significantly, now exceeding 6.5%. As rates approach 7%, buyer activity tends to decline, which may result in a slowdown in price growth just as we approach the peak of the spring market.
Real Estate Confidential
List prices hold little significance here in the East Bay. It's widely understood that homes are listed well below what sellers are actually willing to accept.
This strategy fuels competition among buyers, ultimately driving up final sale prices. Why would any seller or listing agent want to be the first to break away and list a property at a more realistic price? It’s a textbook example of a collective action dilemma.
That being said, I occasionally find myself feeling frustrated as well. During the early spring market, the contrast can be especially striking. Consider the sale prices of these homes, all of which were initially listed at approximately $900K in Oakland.
Kim's Corner
Local asparagus has arrived at the markets, and I’m excited to share my go-to recipe. It’s incredibly simple to prepare—but no one needs to know that! 😉
Ingredients:
- 1 bunch of asparagus
- 4 tablespoons soy sauce
- 2 teaspoons sesame oil
Instructions:
Blanch the asparagus for 2–3 minutes. Combine all ingredients in a ziplock bag and let it marinate for a few hours or overnight.