Year In Review
Median Home Prices 2024
Citrus Season: Blood Orange & Endive Salad
This month I wanted highlight citrus. After all, we are approaching peak winter citrus season. Aside from making tons of fresh squeezed OJ (cara cara oranges are THE BEST for this) this salad makes a strong appearance at our house throughout the winter. It’s from one of my favorite restaurants, LA’s Bäco Mercat (sadly closed
I’m usually not the biggest fan of lumping sales figures together by city as each city has a large variation in neighborhoods and that can sway the numbers considerably. But it’s the end of the year and I have to give the people what they want : )
Above are the median home prices for single family homes (no condos or multi family units). As you digest the info keep in mind that interest rates spent most the year hovering around the high 6% range. This is the second year in a row with interest rates in this range and it appears as though buyers are adjusting. Also, home sales were UP from the year before in the inner East Bay by 10% on average.
For the second year in a row, El Cerrito led in median home price increase. For many buyers, especially first time buyers, it offers a much more affordable entry into the East Bay housing market. Albany remains strong anchored by its public schools. A deeper dive into Berkeley shows big swings from some zip codes with a 7% increase (Elmwood) and others with a 19% decrease (West Berkeley). In the case of West Berkeley, given all the biotech development going on we’ve seen a large number of fixers go on the market to investors, thus muddying the numbers a bit.
In our area we are still seeing an influx of buyers who are priced out of Silicon Valley as the median home prices there are over $2M and they increased by 10-20% in some cities. Not shocking given the large number of high income earners and the strong year for stocks,/crypto, especially top performers like Nvidea (+170%) and Bitcoin (+120%)
As I track detailed sales metrics, I noticed that December had an exceptionally high amount of offers written on homes throughout the inner East Bay. This indicates an active buying pool that is ready to go early in the year. My expectation is that we will hit the ground running in 2025. Stay tuned . . . .
3 Belgian endives (trimmed)
1 tbsp fresh tarragon chopped
1 tbsp fresh dill chopped
1 tbsp fresh parsley chopped
• 4 oz. crumbled blue cheese
• 1 tbsp Banyuls vinegar (or champagne vinegar)
• Pinch of salt
• 3 tbsp extra virgin olive oil
• 1 tsp finely chopped shallot
• 1 tsp finely chopped chives
• 1 tsp grated lemon zest
• Fresh black pepper
• 3 tbsp dukkah
• 1/4 tsp Aleppo pepper
Steps
1.Peel oranges and cut them to trim off all pith. Then slice oranges cross-wise into 1/2 slices.
2.Toss together endive, tarragon, dill, parsley in a large bowl. Gently mix in blue cheese.
3.Whisk vinegar and salt in a bowl. Add olive oil, shallot, chives, lemon zest and a grind or two of black pepper.
4.Gently toss the endive mixture with the dressing. Sprinkle with dukkah & Aleppo pepper. Voila!
FED CUTS RATES BUT MORTGAGE RATES GO UP?!
On several occasions this year the Federal Reserve (the Fed) has announced a rate cut and then interest rates for mortgages went up. What’s that all about?
A common misconception, even among real estate professionals, is that the Fed directly controls mortgage interest rates. While the Fed’s actions influence the economy, the relationship between the Federal Funds Rate and mortgage interest rates is complex, thus the potential confusion when the Fed reduces their rate but then mortgage rates increase.
The Federal Funds Rate is the rate banks charge each other for overnight loans. The Fed adjusts this rate to manage economic growth, in fl ation, and employment. Lowering the rate aims to stimulate borrowing and spending, while raising it slows inflation. The Fed meets 8 times annually to discuss and announce any adjustments to this rate.
Mortgage rates, however, are influenced by factors like bond market trends, inflation expectations, and economic indicators. They are closely tied to yields on mortgagebacked securities (MBS) and the 10-year Treasury bond. When the Fed cuts rates, concerns about in fl ation or economic instability can lead investors to demand higher yields, pushing mortgage rates up.
One of my go-to tools for staying on top of mortgage rates, and really anything interest rate related is the app Mortgage News Daily. It provides up to the minute info on everything interest rate related. This includes real time rates, related articles and extensive fi nancial analysis. I highly
HOW HEAT PUMPS WORK
Keep in mind that heat pumps can be used to heat/cool a home that has central air and existing ductwork. This means the heat pump would replace the furnace and A/C unit but continue to use existing ductwork to distribute warm/cool air.
For those who are focused on maximum efficiency, the idea of combining a heat pump with ductless mini splits is becoming very popular., especially for those with older homes with unique layouts. Mini splits are individual heating/cooling units that don’t require ducts and can be placed in multiple rooms throughout a home, creating multiple zones. This allows you to address the temperature of one room without the need to heat/cool the entire house making things much more efficient. This option is especially appealing to those who work from home as it can be costly to constantly heat/cool an entire home when you really need one room addressed.
Mini splits, like most technologies, have decreased in size and cost as the market for them has grown. In their early stages the knock on them was how large and clinical looking they were. Older models, like the one below, can dominate the look and feel of any room they occupy. Newer models are smaller in size and now we’re even seeing a whole subset of design friendly options too.
Cost analysis for replacing a gas furnace with a heat pump & mini split system can vary greatly based on the size and layout of the home. On paper the initial cost to replace an old gas furnace with a new one is likely to be less expensive than installing a heat pump & mini split system. But once you factor in available state/federal rebates along with gains in efficiency, the long term cost to operate could far outweigh the upfront costs.
If you’re curious to learn more about heat pumps there is an event being hosted at Headlands Brewing by a local company. You can find details on the back page!
Upcoming Events
Jan 4th | Pacific Pinball Museum, Alameda 11:30AM
Little Flippers Class is a chance to introduce anyone 5-12 years of age to the hobby, sport & recreation of pinball. The class opens with a brief intro to the history of pinball and the sportsmanship. After that attendees spend time practicing and competing against one another. $12 per attendee. Even if you don’t attend this class you MUST check out the Pacific Pinball Museum, it’s so much fun.
Jan 4th | Almanac, Alameda
5:30PM
A very special screening of Top Gun on a 25 foot screen in Barrel Hall @ Almanac. They will also be joined by their friends at the USS Hornet who will be bringing an actual F-8 fighter jet cockpit for photo opps, too. The event is free! 651B Tower Ave, Alameda
Jan 17th | Oakland Arena
7PM
The Harlem Globetrotters bring their world famous traveling (pun intended) show to town for one night. Incredible dunks, trick shots and endless shenanigans are all a part of what you’ll get when you watch the Globetrotters take on their perennial opponent, the Washington Generals. Tickets at available at www.harlemglobetrotters.com
Sat Jan 11th | Piedmont Piano Co., Oakland 5:30PM
Grammy nominated pianist & composer, Romain Collin celebrates the release of his newest album, Dust. NPR describes Collin as “a visionary composer” and a “bright young rising star in the jazz world”. The performance coincides with an art show opening by filmmaker, Matthew Palmer. The art show features 11 mini films that were created as a complement to the album. Tickets to see Romain Collin are $20 and available at www.piedmontpiano.com
Jan 18th - Feb 16th | Downtown Napa
After wine tasting, Napa Lighted Art Festival is the next best reason to make the drive the Napa. The annual exhibit celebrates light technology/art and is a walkable outdoor tour featuring 11 lighted art sculptures and for the first 9 nights three iconic buildings will feature special projection art. The event is free and is at its best after dark, of course.
BLUEPRINT | EAST BAY
