SFR Update 2022-07-31

 

For some National Real Estate Indicators, click here.

 

Detached Single-Family Homes in the East Bay

 

  • Revised MLS data shows that the East Bay had 6.9 weeks of inventory on the market for the week ending July 22, 2022.  For the week ending July 30, 2022, the inventory of detached single-family homes continued to climb across the East Bay at a faster pace than that going pending.  At the current level of demand, we now have 7.5 weeks of inventory on the market, which in and all by itself would suggest a ‘neutral’ price bias at this time, which has been the case for a typical 1000sf to 1,800sf home, starting in February 2022.  That said, the last week of July 2022 showed enough weakness in final selling prices that the median (final) selling price/sqft of typical East Bay Homes for the entire month of July 2022 was actually lower than the February 2022 mark.  (( Bear in mind, these are, of course, ‘nominal $’.  Arguably, real estate prices in ‘real $’ will continue to decrease so long as inflation stays elevated. ))  Also, note that for the week ending July 22, 2022, the average 30-year fixed mortgage rate stood at 5.74%.  In an interesting tidbit, note that Construction Spending for residential properties across the U.S. contracted by 1.6% in June 2022.
  • In July 2022, det. SFRs stayed on the market for 18 days on average before going pending – still more than twice as long as their stay on the market back in April 2022.
  • As of the end of July 2022, only 61% of the det. SFR transactions closed escrow at prices above their last asking price – a level last seen around August 2020 and a decine from the 77% last month in June 2022.  (( Bear in mind, the July 2022 closed transactions were most likely negotiated back in June 2022, some 30 to 35 days, generally speaking, before their close date in July 2022. ))

For some snippets on the 2-to-4 Unit Properties market in the East Bay, click here.