Source: Pleasanton Weekly —
Real estate markets throughout the East Bay have experienced significant changes since 2019 — and more are on the way.
“The most dramatic changes during 2023 will be mortgage interest rates,” said Steve Medeiros, 2023 president of the Bay East Association of Realtors.
In early 2022, rumors about new federal lending policies caused rates to begin climbing. After years of historically low rates, by the middle of 2022, homebuyers trying to secure purchase financing were confronted with rates that had virtually doubled compared with just a few months prior. Higher monthly payments put the cost of homeownership in Pleasanton out of reach for many potential buyers.
“Faced with significantly less purchasing power due to larger monthly payments, buyers backed off making aggressive offers,” Medeiros said. “Starting in June 2022, homes began sitting on the market longer as buyers hit the brakes.”
This was a major change compared with the summer and fall of 2021. During that period, a home was on the market, on average, for two weeks or less. Contrary to the seasonal nature of real estate activity, homes sold quicker during November and December compared with previous months.
