EAST BAY MARKET REPORT OCTOBER 2023
K H R I S T A
J A R V I S
T E A M
ALAMO MARKET ANALYSIS
BLACKHAWK MARKET ANALYSIS
SINGLE FAMILY HOMES YEAR OVER YEAR
SINGLE FAMILY HOMES YEAR OVER YEAR
ACTIVE
NUMBER OF
LISTINGS
SALES
28%
-73%
LISTINGS
SALES
100%
20%
15.6%
10.8%
6.07%
DAYS ON SALES PRICE /
MARKET
MARKET
SALES PRICE /
APPROXIMATELIST MARKET VALUE PRICE
LIST PRICE
$9,500,000 RATIO
RATIO
SOLD AVERAGES
SOLD AVERAGES October 2022
October 2023
$2,500,000
October 2023
October 2023
$2,000,000
$2,000,000
$1,500,000
$1,500,000
$1,000,000
$1,000,000
$500,000
$500,000
$0
NUMBER OF
-10%
DAYS ON
$2,500,000
ACTIVE
$0 Median Sales Price
Average Sales Price
Median Sales Price
Average Sales Price
DANVILLE MARKET ANALYSIS
DIABLO MARKET ANALYSIS
SINGLE FAMILY HOMES YEAR OVER YEAR
SINGLE FAMILY HOMES YEAR OVER YEAR* *aggregated data from July/August/September due to low market movement
ACTIVE
NUMBER OF
ACTIVE
NUMBER OF
LISTINGS
SALES
LISTINGS
SALES
-32%
-10.3%
0%
-11.6%
-22%
1.4%
DAYS ON MARKET
100%
SALES PRICE /
5%
DAYS ON
SALES PRICE /
MARKET
LIST PRICE RATIO
LIST PRICE RATIO
SOLD AVERAGES $2,500,000
October 2022
SOLD AVERAGES October 2023
$2,000,000
$4,000,000
August/September/October 2022 August/September/October 2023
$3,000,000
$1,500,000 $2,000,000 $1,000,000 $1,000,000
$500,000
$0
Median Sales Price
Average Sales Price
$0
Median Sales Price
Average Sales Price
SAN RAMON MARKET ANALYSIS SINGLE FAMILY HOMES YEAR OVER YEAR NUMBER OF
ACTIVE
SALES
LISTINGS
219%
-27%
285%
-12%
DAYS ON
SALES PRICE /
MARKET
LIST PRICE
APPROXIMATE MARKET VALUE
$9,500,000
RATIO
SOLD AVERAGES $2,000,000
October 2022
October 2023
$1,500,000
$1,000,000
$500,000
$0
Median Sales Price
Average Sales Price
LOCAL MARKET
MARKET FORECAST Slower economic growth and cooling inflation will bring down mortgage interest rates in 2024 and create a more favorable market environment to spur California home sales next year, according to a housing and economic forecast released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). The baseline scenario of C.A.R.'s "2024 California Housing Market Forecast" sees an increase in existing single-family home sales of 22.9 percent next year to reach 327,100 units, up from the projected 2023 sales figure of 266,200. The 2023 figure is 22.2 percent lower compared with the pace of 342,000 homes sold in 2022. The California median home price is forecast to rise 6.2 percent to $860,300 in 2024, following a projected 1.5 percent dip to $810,000 in 2023 from $822,300 in 2022. A persistent housing shortage and a competitive housing market will continue to put upward pressure on home prices next year. "2024 will be a better year for the California housing market for both buyers and sellers as mortgage interest rates are expected to decline next year," said C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. "A more favorable market environment with lower borrowing costs, coupled with an increase in available homes for sale, will motivate buyers and sellers to reenter the market next year. First-time buyers who were squeezed out by the highly competitive market in the last couple of years will try to attain their American dream next year. Repeat buyers who have overcome the 'lockin effect' will also return to the market as mortgage rates begin to trend down." Inflation will continue its gradual decline over the next 18 months, with the CPI registering 2.6% in 2024, down from 3.9% in 2023. As such, the average 30-year, fixed mortgage interest rate will decline from 6.7 percent in 2023 but remain elevated at 6.0 percent in 2024. While next year's projected average for the 30-year fixed mortgage interest rate will still be higher than the levels observed in the few years prior to the pandemic, it will be lower than the long-run average of nearly 8% in the past 50 years. Housing supply in 2024 will remain below the norm despite a projected increase in active listings of between 10 percent to 20 percent, as market conditions and the lending environment continue to improve. "With the economy expected to soften in 2024, the Federal Reserve Bank will begin loosening its monetary policy next year. Mortgage rates will trend down throughout 2024, and the average 30-year fixed rate mortgage could reach the mid-5% range by the end of next year," said C.A.R. Senior Vice President and Chief Economist Jordan Levine. "Buyers will have more financial flexibility to purchase homes at higher prices, which could generate increased housing demand and result in more upward pressure on home prices." Source: CAR
LOCAL MARKET TRENDS CONTRA COSTA COUNTY
Reno Real Estate Investment
Favorable Tax Environment: Nevada has a business-friendly tax environment, with no
Overview
state income tax and relatively low property taxes. This
Reno, Nevada is a popular destination for real estate
favorable tax environment can be beneficial for real
investors due to its strong economy, growing population,
estate investors, as it can increase potential returns on
and affordable housing market. The city offers a range of
investment. Moreover, the state's tax structure is
recreational
including
favorable to businesses, making it an attractive location
nearby Lake Tahoe and the Sierra Nevada mountains, as
for corporations, which can result in increased demand
well as a thriving business environment with a diverse
for housing.
opportunities
and
attractions,
range of industries, from technology to healthcare and logistics.
Tourist Destination:
Investing in the Reno real estate market offers a dynamic landscape with both opportunities and considerations. While recent data indicates a 5.6% decrease in average home values over the past year, it's important to recognize that real estate markets often exhibit shortterm fluctuations.
Reno is a popular tourist destination, attracting visitors to its many attractions, such as Lake Tahoe and the Reno Air Races. This tourism industry can provide a stable source of income for real estate investors through shortterm rentals and vacation homes. Furthermore, the city hosts several events and festivals throughout the year, such as the Reno Rodeo, Hot August Nights, and the
Here are the top reasons to consider investing
Great Reno Balloon Race, which can boost the demand for short-term rentals.
in Reno real estate: Growing Rental Market: As home prices continue to rise, more people are turning
Strong Economic Growth: Reno's economy has seen a significant boost in recent years, with job growth outpacing the national average. The city's diverse economy includes industries such as healthcare, technology, logistics, and manufacturing, which have all seen growth in recent years. This economic growth has resulted in increased demand for housing, making it an attractive market for real estate investors.
to rent as a more affordable housing option. This has resulted in a growing rental market in Reno, making it an attractive market for real estate investors looking to generate passive income. The city's growing economy and population growth also contribute to this trend, providing a stable demand for rental properties.
Moreover, the city is a hub for tech startups and small
Growing Population:
businesses, which are continually looking to expand and
Reno's population has been steadily growing in recent
hire.
years, with an expected growth rate of 2.7% by 2025. This population growth can increase demand for housing, presenting opportunities for real estate
Affordable Housing Market: Despite the average home value in Reno being over $500,000, it is still relatively affordable compared to other western cities such as San Francisco and Seattle. This affordability has made Reno an attractive destination for people looking to relocate from more expensive areas, increasing
demand
for
housing
and
presenting
opportunities for real estate investors. Additionally, the city has a wide range of housing options, from singlefamily homes to condos and townhouses, allowing investors to diversify their portfolios.
investors to capitalize on this trend. Additionally, the city's population growth is driven by both domestic and international migration, providing a diverse pool of potential renters and buyers for real estate investors. Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates. Source: Norada Real Estate Investments
Contact us today if you're considering a second home in the Tahoe/Incline Village/Reno area!
TOP REAL ESTATE TRENDS
QUESTIONS TO CONSIDER 1.
Is your current home your dream home?
2. Have you considered any renovations? 3. Do you have any concerns about the current state of the market? 4. Are you interested in investment opportunities? 5. Have you considered upgrading or downsizing?
Wherever you currently stand, always remember that we're here for you as a local resource and want to help you through this significant life event. Contact us today to receive a free home valuation. Cheers,
The Khrista Jarvis Team DRE# 01213582 (925) 309-0111 | www.khristajarvisteam.com