EAST BAY MARKET REPORT
June 2024
ALAMO MARKET ANALYSIS
SINGLE FAMILY HOMES YEAR OVER YEAR
BLACKHAWK MARKET ANALYSIS
SINGLE FAMILY HOMES YEAR OVER YEAR
SOLD AVERAGES
APPROXIMATE MARKET VALUE
SOLD AVERAGES
$9,500,000
$3,000,000
$2,500,000
DANVILLE+ DIABLO VALLEY MARKET
ANALYSIS
SINGLE FAMILY HOMES YEAR OVER YEAR
SAN RAMON MARKET ANALYSIS
SINGLE FAMILY HOMES YEAR OVER YEAR
SOLD AVERAGES
LOCAL MARKET TRENDS
CONTRA COSTA COUNTY
LOCAL MARKET TRENDS
CONTRA COSTA COUNTY
THE FED'S DELICATE INTEREST RATE BALANCING ACT
THE FEDERAL RESERVE AND INTEREST RATES ARE THE KEY FORCES DRIVING THE REAL ESTATE SECTOR AT THE MOMENT AS THE MARKET WAITS FOR WHAT APPEARS TO BE AN IMPENDING RATE REDUCTION.
"I HOPE THEY GET ON WITH IT SO WE CAN PUT THIS CHAPTER BEHIND US AND MOVE ON TO OTHER SIGNIFICANT TRENDS AFFECTING COMMERCIAL REAL ESTATE," JOHN CHANG, SVP OF RESEARCH SERVICES AT MARCUS & MILLICHAP'S, SAID IN A RESEARCH VIDEO.
BUT THE FED HAS A DELICATE BALANCING ACT TO PERFORM WHEN DECIDING HOW TO ADJUST RATES, HE NOTED. IT HAS TO KEEP INFLATION UNDER CONTROL BUT ALSO KEEP PEOPLE EMPLOYED – ESSENTIALLY MAINTAINING THE ECONOMY IN THE 'GOLDILOCKS ZONE,' MEANING DON'T LET IT GET TOO COLD OR OVERHEATED. CHANG SAID THE FED MAY BE FEARFUL OF MAKING THE WRONG DECISION, WHICH COULD RESULT IN WAITING TOO LONG AND ULTIMATELY OVERSTEERING INTEREST RATES.
IN THE YEARS FOLLOWING THE GLOBAL FINANCIAL CRISIS, THE FED WAS VERY CAUTIOUS ABOUT RAISING INTEREST RATES. WHEN THE PANDEMIC HIT, THE FED WAS DECISIVE ABOUT DROPPING INTEREST RATES TO ZERO AND FUNNELING STIMULUS INTO THE ECONOMY. WHEN INFLATION STARTED TO SURGE IN 2021, THE FED WAS ONCE AGAIN VERY SLOW TO TAKE ACTION, RECOUNTED CHANG.
"THE FED DIDN'T START TO RAISE RATES UNTIL MARCH OF 2022 AND BY THEN, THEY MISSED THEIR WINDOW AND THEY HAD TO HIT THE BRAKES REALLY HARD," SAID CHANG. "NOW IT LOOKS LIKE INFLATION IS MAKING STEADY HEADWAY TOWARD THE FED'S 2% GOAL, BUT RATHER THAN INITIATING SMALL, MEASURED STEPS, THE FED HAS ONCE AGAIN HELD BACK."
“RATHER THAN SEVERAL RATE CUTS THIS YEAR, HE SAID HE EXPECTS ONE RATE CUT
IN SEPTEMBER AND POSSIBLY ANOTHER BY THE END OF THE YEAR DEPENDING ON UNEMPLOYMENT. IF UNEMPLOYMENT
STARTS TO INCREASE RAPIDLY, THE FED MAY HAVE TO OVERSTEER WITH A 50 BASIS POINT REDUCTION. HOWEVER, CHANG SAID CRE INVESTORS SHOULD BE ENCOURAGED THAT THE INFLATION CYCLE IS PLAYING OUT.”
THIS WEEK THE MEDIAN LIST PRICE FOR DANVILLE, CA 94526 IS $2,099,000 WITH THE MARKET ACTION INDEX HOVERING AROUND 61. THIS IS LESS THAN LAST MONTH'S MARKET ACTION INDEX OF 63. INVENTORY HAS DECREASED TO 33.
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,
Khrista Jarvis-Diebner
DRE# 01213582 (925) 903-0111 | www khristajarvisteam com
