The market continued to show signs of slowing over the last month, as the average number of days on the market for active homes in the Tri-Valley area increased from 39-days to 43-days. While this is not a significant change, it follows the trend of longer marketing times. Price changes have become commonplace in the market due to softening buyer demand and longer marketing times. Inventories also declined again this month. This is not surprising because we are quickly approaching the typically slower holiday season. I expect inventories to continue to shrink throughout the holidays and into early 2023.
Here’s a comparison of today’s available inventory levels as compared to available inventory levels last month:
Pleasanton: 82 (-13) – Dublin: 69 (-9) – Livermore: 112 (-36)
San Ramon: 68 (-25) – Danville: 94 (-4) – Alamo: 29 (-1)
Last week we saw another .75% rate hike from the FED, and the average 30-year mortgage rate topped 7% for the first time since 2001. There is no indication that the FED will slow down with the hikes anytime soon, as inflation is still a problem. As previously mentioned, many people expect the FED to overshoot with the rate hikes and cause a deep recession in early-to-mid 2023. The same people predict that we’ll see much lower rates sometime in late 2023 to early 2024 as the FED will be forced to reverse its tightening policy. This could be a good opportunity for those purchasing homes now to refinance at a lower rate in the future.