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What the heck is going on in the Real Estate Market?
The Appraiser’s Appraisal
Oakland (Lake Merritt/Cleveland Heights and vicinity)
Sold past 1-6 months (n=87) median (med) $638,000 Days on Market (DOM)=22
Sold past 7-12 months (n=111) med $630,000 DOM=20
This suggests a primary (year) change of +1.270% which is effectively stable (change of less than 2%)
Sold past 1-3 months (n=39) med $660,000 DOM=24
Sold past 4-6 months (n=48) med $625,00 DOM=21
This suggests a secondary (quarter to quarter) change of +5.600%.
There are 31 current active listings ranging from $359,000 to $4,000,000 with median DOM at 55 days. Range 1 – 140 days.
There are 9 pending listings (in contract) ranging from $300,000 to $975,000 with median DOM at 40 days. Range 12 – 75 days.
So, what’s going on? The 10/22 review of this area suggested a primary change of +-2.582% and a secondary change of -8.537%. The 9/11 review suggested a primary change of -3.976% and a secondary change of -3.475%. The primary trend appears to have stabilized and the secondary trend has moved into positive territory. This is another indication that the effects of interest rate increases may be on the way out, at least here. This area has similarities to some of the other areas we have recently looked at but, still other areas appear to be somewhat depressed. Are we are seeing more effect in some areas with both higher and lower price points? There looks to be a sweet spot between about $600K and $1,000K. The very high value markets still seem to be in demand. I suspect this is the result of buyers with a more limited budget reducing their expectations and those who have the resources to overcome higher interest rates. As with any real estate analysis, this is a snapshot in time. There are many conflicting opinions. Trying to predict the market is like attempting to catch a falling safe…
Want to know what’s going on in a different market or sub-market? Just ask!
Appraiser legal stuff:
CA OREA License No. AR041451 – JamesForquer.com
Data is from EBRDMLS and includes the City of Oakland North of Hwy 880, South of Grand Ave, East of Hwy 980, and West of Park Blvd/5th Ave, all MLS residential listings, effective as of 12/09/2022
#realestate
