Making Sense of the Real Estate Market

Making sense of the real estate market is always tough, but recently it has been even more complicated—world events, and the news cycle are keeping everyone up at night. The concerns about inflation, the war, the tariffs, the interest rates, and the general sense of uncertainty in the world make one wonder about whether this is the right time to buy or sell a house.

A Local Economy That Holds Strong

Well, the economy is all very local, and fortunately for us at this moment, quite resilient. In hard economic times, many people make the choice to buy real property, as it is something you can touch and feel as opposed to the nebulous nature of the stock market. When the stock market is extremely volatile, real estate is a safe harbor.

What’s Driving the Market Right Now

Beyond this, there are local events that are going to influence the property market more—for example, the influx of AI companies to the Bay Area, where new employees will need housing.

Add to this the vast number of people who refinanced their homes when you could get a loan at 2.5%—those people, in a large measure, are not moving, so their inventory does not hit the market. Older people are getting in-home help instead of going to assisted living, which I applaud (it’s better for them, if they can afford it, to stay in familiar surroundings).

New construction has been on hold for the most part due to tariffs and supply chain issues, and many builders left the area after the large fires and have not returned. Many went out of business during the pandemic. So it is harder to get a newly constructed property these days, so many more people are relying on pre-existing construction.

Inventory has been scarce in our area for years, and this whole set of events is actually creating a little boom in the housing market.

What I’m Seeing on the Ground

I have been in several multi-bid situations in recent months that belie people hand wringing about the economy—houses going for 10, 15, even 50% above list price in Berkeley and areas of Oakland.

So… Is This a Good Time to Buy or Sell?

So, in answer to the question, is this a good time to buy or sell?

The answer is yes, and it is borne out by recent statistical reporting. Even the condo market, which has been moribund for years (during the pandemic, no one wanted to live in places where you had to touch an elevator button or share air in one), has seen a huge uptick.

Many people who have been loath to downsize are starting to consider moves, even out of state, which may free up some of the larger homes that have not been on the market recently.

Final Thoughts

So, yes, these have been hard times, but someone always needs to buy or sell a house—it is the one thing we can count on in the local economy year over year!

So don’t be fearful, do the very best thing for you and your one big beautiful life!