For those thinking of buying or selling property in the Inner East Bay in 2023, there is great uncertainty: high inflation, rising interest rates and tech layoffs have led to a sudden shift in the market.

 

After a red-hot market fueled by the pandemic, the number of sales fell 29% in July-November, compared to the previous year in the Inner East Bay (defined as the cities between Pinole and San Leandro west of the Caldecott Tunnel). In addition, prices stopped climbing and fell 4% to a median of $1 million, but homes still sold an average of 9% over asking in an average of 24 days.

 

Many buyers and sellers feel unsure if they should move forward. And if they do, what are the best strategies? We asked our agents how they predict next year’s housing market will unfold.

 

Many agents believe that while the market will be less manic than it’s been in recent years, activity will remain stable. Similar to previous downturns, Linda Elkin said, “Properties that are the most desirable in all ways (location, condition, well-designed upgrades and move-in ready) will sell faster and for more than others.”

 

But agent Ehsan Habib said that not all homes will perform well. “Some neighborhoods will see their values fall from the highs of 2021 and early 2022,” Habib said. “However, most of those who purchased in 2020 or before will experience at least some price appreciation.”

 

Negar Souza said she believes inventory will surge come spring. “Sellers were holding tight watching and planning in the fall, but those who must sell eventually will likely do so in the spring,” she said.