East Bay Real Estate Market Update for May 2018
This month, the real estate market story is not new. In fact, from May 2017 to May 2018, we have 136 fewer active listings across our MLS. Low inventory, frustrated buyers and home prices continuing to go up, yet, our real estate market is still robust and the buyers keep trying!
It appears that what buyers are looking for is either turn-key or if it needs work, it is priced accordingly. We are seeing multiple offers and lots of them – on the “great” properties. Homes with a difficult floorplan, no yard, on a busy street will sell, but it may take a price adjustment or two.
One change to be aware of is that the average 30 year mortgage is at a rate not seen since 2011, up to 4.61%, according to Freddie Mac’s Primary Mortgage Market Survey. The average 15 year mortgage moved up to 4.08%, and the five-year, Treasury-indexed hybrid adjustable mortgage moved up to 3.82%.
While this year’s mortgage rates have not caused much of a ripple in the strong demand levels for buying a home in our market, inflationary pressures and the prospect of rates approaching 5% could begin to give some prospective buyers “pause”.