The 2023 real estate market in the Inner East Bay was not necessarily a pretty one. The number of sales fell to their lowest level since the MLS went online in 1996. Median price for the year as a whole fell 9% (and now stands above 2020 levels).
But the market may have turned the tide and could be headed in a new direction. Looking at key metrics in Q4 2023:
- Median price increased 4% in Q4 2023 compared to one year prior.
- Homes sold 8% over list price, 3 percentage points higher than one year prior. And homes that sold in the $2M-$3M range did so at 20% over list price, 7 percentage points higher than a year ago.
- And the Inner East Bay is not the only segment of the Bay Area seeing a resurgence. Prices increased in the Peninsula/South Bay (+8%), Outer East Bay (+4%) and Napa and Sonoma Counties (+3%).
These improvements may be driven by greater confidence in the economy: Inflation is down, mortgage rates are at their lowest levels since April 2023, and the Fed may cut interest rates more than once this year.
These factors may unlock inventory, which is what is really needed to get the market back on track. And this shift may already be underway: Through the second week of January, new listings are up 55% compared to the previous year.
As consistent with the latter half of 2023, buyers should expect elevated levels of competition, particularly among the properties that are move-in ready, priced well and are in an attractive location. Sellers may find that improvements to the market vary from week to week, neighborhood to neighborhood, so they should be prepared to make their listing as attractive as possible.
To learn more about the market, consider attending Red Oak’s State of the Market Webinar, which is mentioned below. In the meantime, reach out if you would like to discuss your real estate goals in 2024.
What's Coming for East Bay Real Estate? Attend the State of the Market Webinar
Join the Red Oak Realty leadership team as they review key data from 2023 and determine how buyers and sellers may respond in 2024.
They'll cover topics such as:
- Inner East Bay key performance indicators, such as changes in the number of sales, median price, the percent difference between list and sale price, and days on market
- Changes in mortgage rates and how they may affect the 2024 East Bay market
- Changes in the insurance landscape and how buyers, sellers and agents are navigating it
If you have questions you'd like us to address, please reply to this message and it will be forwarded to the team.
