Article by Gail Quill for Issu - November Newsletter (PDF)

NOVEMBER UPDATE Turkey, Anyone? By Gail Quill

As we go into November, real estate starts to take a break for the Holidays. Most sellers and buyers are busy getting ready for two of the year's best holidays. There is so much food, family, and fun to be had!

Find out what’s happening in our Alameda real estate market.

Buyers who have been holding off because of high interest rates started returning to open houses this past weekend. November’s first week was the best week for mortgage rates since the pandemic-fueled rally of 2020 as rates dropped below 8 percent.

Rates are expected to trend lower into Thanksgiving, at least

Home Buyers still outnumber Home Sellers. That has been our ongoing issue for a long time. At the current pace of home sales, every home listed in our area would be sold in 1.56 months, making it a seller’s housing market. Supply of six months is considered a balanced market.

Many people want to buy a home today. Few people want to sell.

The market isn’t balanced. This is how home values rise.

So, while sellers are taking a few months off, it’s a good time for buyers to get ready. Talk to a lender today to clarify how much you can afford, how much down payment you’ll need, and what type of loans are available. You don’t need a big down payment to buy your first home!

Our Monthly Supply of Inventory currently stands at 1.56. This metric measures the number of months it would take to sell all the available homes on the market if no new listings were added. A lower value indicates a seller's market, where demand outweighs supply, leading to potentially higher prices. With a Month's Supply of Inventory at 1.56, it's safe to say that we're in a highly competitive market.

Now, let's move on to the 12-Month Change in Months of Inventory, which shows a positive growth of 1.96%. This increase suggests that more homes have become available on the market in the past year. While this rise in inventory might seem initially promising for buyers, it's essential to note that the increase is relatively small compared to the overall supply. Sellers can still enjoy the upper hand in negotiations due to the continued demand in the market.

Next on our list is the Median Days Homes are On the Market, which currently stands at an astonishingly low 12 days. This metric represents the average number of days it takes for a home to go under contract after being listed. With homes selling so quickly, it's evident that the market is highly active and competitive.

Buyers need to act swiftly and decisively to secure their dream home, while sellers can expect a quick turnaround on their property.

Moving on, we have the List to Sold Price Percentage, which impressively stands at 111%. This metric indicates that, on average, homes sell for 11% more than their original listing price.

This figure highlights the robust demand in the market, as buyers are willing to pay a premium to secure their desired property. This means sellers have an excellent opportunity to maximize their return on investment.

Lastly, let's talk about the Median Sold Price, which currently sits at a handsome $1,035,000. This figure represents the middle price point of all homes sold in the market. With the median sold price reaching such heights, it's clear that the real estate market is thriving, and property values are strong. Sellers can take advantage of this favorable climate to capitalize on their investments, while buyers may need to consider their budget and explore various financing options.

In summary, the market is highly competitive, with a low Months Supply of Inventory and a swift turnaround time for homes. Sellers can enjoy a favorable List to Sold Price Percentage and a robust Median Sold Price, indicating strong demand and potential for high returns. On the other hand, buyers need to act quickly and be prepared to navigate a competitive market. So, whether you're buying or selling, I can help you navigate this ever-changing market.

I hope you have a delicious Thanksgiving!

REALTOR® | DRE #0123456

Gail-Quill@kw.com Gail-QuillRealty.com (123) 456-7890

(123) 456-7890 | 1234 Anywhere Ave., Somewhere, CA 12345 | DRE #123456