In April we saw the market begin to rebound after a long and rainy winter, with about 20% more homes on the market compared to the prior month, and a 22% increase in the median sold price to $1.827 million. However compared to the same time last year, the median was down 8.6% and the number of homes for sale was down 35%, reflecting the continuing the trend we have seen year to date.

Buyers Are Beginning to Get Used to Higher Interest Rates

One of the things you hear a lot these days in the real estate world is “marry the home , date the rate” which means that a home is often a long-term investment while interest rates will rise and fall over the years. My buyers know that interest rates are more at historical “norms” than they were in the past several years, and hope to refinance if and when rates go down again. 

However, according to the Golden Gate Sotheby’s bay area market report below, prices have dropped to compensate for the higher interest rates: “[The recent] drop in pricing means that the monthly mortgage payment at current rates for a median-priced home is less than the payment for the median-priced home one year ago.”

As I have been saying for several months, buyers and sellers cannot put their lives on hold indefinitely – and at some point they have to begin moving forward again after the shock of interest rate increases wears off. There are signs that is happening in the market now as we begin to see more activity.

What’s Happening in My World

I am talking with buyers and sellers now about their strategies for the remainder of the year as well as next spring. I have a number of exciting listings in the pipeline for this fall. The greatest challenge for sellers right now is finding a home to move into after they sell their current one. Even those who cast a wide net geographically are struggling.

I can now announce that my listing at 10 Washington Avenue in San Rafael sold in 5 days for $113,000 over asking. My clients were lovely to work with and gave me a fabulous review which you will see in some of my upcoming marketing: ““After following Thomas and his blog for about 3 years we were finally happy (and ready) to bend his ear, receive counsel, and benefit from his real estate knowledge…start to finish this was just about the perfect match between our Marin property and his vision on how to market our family compound in San Rafael – detailed, organized, knowledgeable, Thomas worked hand in glove with us and produced a 1-day sale with a sales price way over asking in a tough Marin market. He knows how to real estate!”

How Can I Help?

While the market is shifting, there are many opportunities out there for smart buyers and sellers. Let me help pave the road to success for you!

These market reports are a great place to start, but let’s continue the conversation. I am always happy to discuss the market and the best way to approach buying or selling a home in Marin County or the greater Bay Area. Call or text me anytime at 415-847-5584.