If you were intrigued by the title, I have a feeling that you also want to know something about the supply side of our real estate market. I’ve already talked about a lot of things on the demand side, such as competition, contingencies, and market updates from the buyer or consumer side. That is why I wanted to take a moment because I haven’t really addressed that real estate supply side yet, and it’s also a big part of the equation. It’s a big part of the conversation that we’re in here today, and there are really interesting stats, nationally and locally, that I think are all poignant to your real estate experience here in the East Bay.
Here you will find the updates I put out about the market and the changes we are seeing.
As a follow up to last week’s market update, today, I want to show you some data from the California Association of Realtors (CAR) which I found absolutely fascinating. The general trend? Things are definitely getting better and there’s some really good data that indicates very positive things–but don’t celebrate just yet.
Inman, a real estate news publication that talks about real estate industry-related news, recently put out a series called “Bubble Trouble.” This series shared four stats that will give us hope and four stats that won’t. In this market update, I’m really excited to share with you some of those stats that I found really interesting, as well as some anecdotes about what I see on the ground in this local market so let’s get into this!
Today, we’re going to talk about something a little different than what we usually talk about—the distinction between market price and market value. I wanted to do this as sort of a market update because I think it’s a really important psychology that you need to understand if you’re going to enter the real estate market as a buyer, seller, investor, or even a renter. Right now in our real estate market, these two things are in a real big conflict, and it seems like one is a little bit out relative to the other.
“A housing bubble is started by excessive demand, then it leads to inadequate supply, and then exuberant spending really pushes and inflates the housing bubble further.” With all these bidding wars in our market, everyone’s been wondering when is the bubble going to pop? Unfortunately, I don’t have the answer to that. But what I do have is some evidence and some anecdotes to share with you today—more specifically, about exuberant spending—that will give us a better view of what’s really happening with the health, or lack thereof, of our market.
I am seriously nauseous from this market. It’s out of control. In this market update, I want to talk about some of the things I see on the ground– some actual stories of bidding situations that I’ve been in personally through representing buyers and sellers. Let’s also talk about the mortgage interest rates, specifically, how they’ve gone up and what that’s actually done to our real estate market. Let’s go.
What the f—? A couple of months ago, I put out a video on YouTube talking about the housing bubble and how I didn’t think we were in one. At the time, I had some good reasons to think that. However, the numbers I was just looking at, and some anecdotes that I want to share with you have me feeling different today. So today, I’ve got two stories and a little bit of data that I want to share with you which I think you will find interesting. Hopefully, this will be able to help you make a good decision when it comes to buying or selling your home.
Something in yesterday’s Alameda Journal just caught my attention. It’s an article out of the December 18 edition called “Renter’s Hunt for Deals and Short-Term Commitment.” Why do we care? It’s renters. It’s not homeowners, it’s not buyers, not interest rates, right? Here are the things I got from the article and my Bay Area Real Estate Market 2021 Prediction.