May Market Update

Inventories are reaching levels we haven’t seen in quite a few years in the Tri-Valley as we enter the spring selling season. The rapid increase we saw in April continued into early May, with Livermore leading the way, adding a whopping 52 homes to its available inventory since last month. I have several new listings coming soon and have received multiple calls from potential sellers over the past couple of weeks, indicating inventories are likely to continue growing in the near future. Our favorite property inspector evaluated 70 homes last month, and our other vendors are very busy, further supporting the trend of more homes coming to market soon.

Marketing times are also increasing, with the average number of days on the market rising slightly in each city. Buyer demand, while down from earlier in the year, is showing signs of a rebound. There has been a lot of activity with my recent listings, with one of them receiving multiple offers. The activity level is increasing across all levels of the market, including the higher end luxury homes. I was pleasantly surprised by the level of interest in my new listing in Ruby Hill. We've had several showings in the first few days on the market, with more scheduled throughout the week. The strengthening demand may be attributed to the equity markets stabilizing and beginning to rebound from the tariff-induced sell-off in early April.

Interest rates have been very volatile and are currently hovering in the high 6% range. While no changes to monetary policy are expected at this week’s Fed meeting, their comments will be closely scrutinized for clues about future rate moves. I anticipate more volatility leading up to the Fed’s remarks when they conclude their meeting on Wednesday, which could move rates dramatically in either direction, depending on their future guidance.

I am cautiously optimistic that the U.S. will reach trade agreements with several key countries in the coming weeks. If that happens, the markets will react very positively, potentially bringing many sidelined buyers back into the market. Should this occur, we may experience a busier-than-normal summer real estate market. Fingers crossed!