The Robin Report
Peninsula Market Update
Silicon Valley Association of Realtors
In San Mateo County, June sales fell 8.7% from the prior year. The June median home price of $2.1 million was 3.5% higher than $2 million a year ago. Santa Clara County saw June sales slip 2.6% compared to the same time last year. The June median home price of $1.95 million was 7.1% higher than a year ago.
“The Bay Area has experienced significant drops in sales because purchasing these high-priced homes are real affordability challenges for the typical homebuyer,” Eileen Giorgi, president of the Silicon Valley Association of Realtors, said. “Buyers who can afford to, however, are still willing to pay over asking-price,” Giorgi added.
Data from MLSListings indicates that the average sales-to-list price ratio for both counties is still at 107%, which means homes are selling for over asking price.
“Moving forward, we’ll likely continue to see home price gains, though at a moderate pace, as long as sellers stay on the sidelines and housing supply still is low. Mortgage interest rates are the key factor holding back both buyers and sellers. As interest rates ease, we’ll see a more active marketplace,” Giorgi said.
If you are thinking about moving, Robin & Les can help you strategize the best approach for you.
When Mortgage Rates Will Drop
Mary K. Jacob
In recent years, mortgage rates in the US have soared to their highest levels in more than two decades, leaving many potential homebuyers and sellers wary.
The Federal Reserve’s efforts to combat languishing inflation have played a significant role, as the central bank raised interest rates 11 times from 2022 to 2023.
Forecasts indicate that 30-year mortgage rates, currently around 7.1%, might drop to 6.6% by the end of 2024, and further down to 5.9% by the end of 2025. However, experts caution that for mortgage rates to decline significantly, inflation must also fall.
While experts expect mortgage rates to decline somewhat over the next year, they do not foresee a return to the 3% or 4% rates seen during the COVID-19 pandemic.
For those currently renting, experts suggest that if you qualify for a mortgage and can afford the payment, it might be wise to enter the market now. Buying a home sooner rather than later allows for the opportunity to refinance if rates drop in the future.
Home prices continue to increase from 5% to 6% year over year, and with the loss in appreciation and loan pay-down, the longer the buyer waits, the more they lose the opportunity to buy the home they want.
If you are thinking about buying a home this year, Robin & Les are ready to help you.
Silicon Valley Realtors Brace for Commission Revamp
Sakura Cannestra
A pending settlement from the National Association of Realtors (NAR) could be an industry game changer that upends the commissions homebuyers pay real estate agents. The key changes could come as soon as August. This includes real estate agents no longer seeing commissions on the multiple listing service and having a written agreement with the buyer showing form of payment.
Typically, a buyer’s real estate agent is paid commission on a sale from the seller, which is reflected in the total home price. The amount of commission is historically listed on the multiple listing service platform used by real estate agents to identify and compare properties for sale. That will no longer be the case. With each purchase offer, the buyer's agent may include a request for compensation. Otherwise, the buyer may pay the agent directly.
Michelle Perry, president of the Santa Clara County Association of Realtors, said these changes are unlikely to affect Silicon Valley’s real estate market. Perry said the market is what drives prices, and the region’s low housing inventory and high interest rates are mostly to blame. If anything, she said prices might rise more, but that is yet to be seen.
Experience and expertise are critical in today’s market. Robin & Les Wrigley have helped over 1,000 clients buy and sell homes in the Bay Area.
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