THE PICKETT POST
January 2023 Newsletter |
|
Market Update by the Numbers
|
|
A look back at December 2022...
Single Family Residential home in San Mateo County:- Median Sale Price was $1,545,000 (previously $1,705,000 in November)
- Median Days on Market was 26 (previously 18 days in November)
- Sale Price to List Price Ratio was 99.2% (previously 98.6% in November)
- Price/SqFt Ratio was $1,047 (previously $1,111 in November)
|
|
What We Are Seeing In The Market |
|
"A goal without a plan is just a wish." - Antoine de Saint-Exupery
As we start the new year, we can begin to formulate an outlook on the 2023 Bay Area Real Estate Market.
Fed Funds Rate will continue to rise. The Federal Reserve will meet again on 2/21/2023 and there’s an approximate 95% chance that they will increase the Fed Funds Rate by 25 basis points. This won’t immediately affect mortgage rates, but short-term financing like HELOC’s and credit card payments will adjust if they’re variable.
*Stay out of high interest debt during 2023! Mortgage rates will likely improve towards end of year 2023.
Inflation will continue to improve but it may take a while. We’ve seen several CPI reports consecutively that have shown inflation improving. The fed will continue to raise rates in an attempt to keep inflation down in the coming years. We will see inflation improve from its highs in 2022. |
|
Houses are taking longer to sell. Be patient, but realistic.
In March of 2022, the average number of days on market was only 11 days in San Mateo County! That number ballooned up to 37 average days on market by the end of the year in December 2022! We’re continuing to see homes taking longer to sell particularly condos and townhouses which have suffered from a decrease in demand.
When listing a home in 2023, don't neglect making repairs and cosmetic upgrades. Buyers are looking for a turn key product. Their borrowing power has decreased, and their stock portfolios have also decreased in most situations. Don’t give them reasons to complain when they come into your listing!
Before reducing your price, explore all options including interest rate buy-downs and Non-Recurring Closing Cost Credits. These often times offset more costs to the buyer than getting the home at a lower purchase price! Make sure your realtor can affectively explain this to a buyer's agent and/or buyer. |
|
California Association of Realtors economist Oscar Wei predicts that the worst of the housing slump is behind us. Long-term mortgage interest rates are improving from 2022 highs, and inflation is improving. If you see a property that you like, it probably makes more sense to buy than rent. With higher interest rates come higher deductible mortgage interest write-offs. Be prepared to stick with your interest rate for more than 1 year, but keep in mind you may have an opportunity to refinance sooner rather than later if you purchase in 2023.
Most economists believe long term interest rates will continue to improve. It may make more sense to explore the more attractive interest rates of adjustable rate mortgages including 5 year, 7 year, and 10 year ARM’s. These give you a cheaper cost of interest in the first few years and can be refinanced into longer term 30 year fixed rate mortgages if/when mortgage rates improve. |
|
2022 Bay Area Real Estate
Market Review |
|
Since 2022 has drawn to a close, we can look back and reflect on one of the most rapidly changing markets in Bay Area history. The San Mateo and San Francisco County Real Estate Markets at the beginning of 2022 were the hottest we’ve ever seen.
From January 2022 to April of 2022 we saw a whopping increase of nearly 20% in just a 4 month period of Median Sales Price in San Mateo county. This was of course fueled by “rock bottom” interest rates and record low inventory.
We saw these numbers rapidly begin to decrease after April of 2022. From April to October we saw all of these gains disappear with rapidly rising interest rates, and exhausted buyers who decided they would rather rent than compete for such a limited supply of real estate inventory.
Median Sales Price – San Mateo County- January 2022 - $1.888M
- April 2022 - $2.225M
- October 2022 - $1.8000
|
|
2022 was a wild roller coaster ride in the real estate market, but we're seeing stability on the horizon. While the federal fund rates are increasing, inflation should continue to improve and that is what we need for the real estate market to stabilize.
That being said, the Bay Area Real Estate Market is back in full swing. More inventory is becoming available and buyer competition is heating back up.
If you have 2023 Real Estate goals, now is the time to start planning. Contact us today for a consultation on how to achieve those goals! |
|
Client Success
December 2022 |
|
2 Bed | 2 Bath | 1,370 SqFt.
Gorgeous Condo in San Francisco!
Incredible downtown skyline views!
Contact Kevin at (415) 283-7919 for additional details. |
|
2 Bed | 2 Bath | 1,060 SqFt.
Charming Ground Level Condo in South San Francisco!
Refreshed unit with Open Concept Living!
Contact Kevin at (415) 283-7919 for additional details. |
|
2 Bed | 2 Bath | 1,267 SqFt.
Premiere Luxury Condo in Mission Bay, San Francisco!
Contact Caitlin at (650) 576-3994 for additional details. |
|
3 Bed | 1 Bath | 1,320 SqFt. | 2 Car Garage
Storybook California Rancher in North Shoreview, San Mateo!
Contact Caitlin at (650) 576-3994 for additional details. |
|
2 Bed | 2 Bath | 1,176 SqFt.
Exquisite, Contemporary Condo with breathtaking views in North Beach!
Contact Caitlin at (650) 576-3994 for additional details. |
|
3 Bed | 1 Bath | 1,080 SqFt.
Charming & Spacious home in the highly desirable San Mateo Village!
Contact Caitlin at (650) 576-3994 for additional details. |
|
2022 Pickett Real Estate Group
Year in Review
|
|
If you’ve read this far, we thank you! Thank you for being a valued client of the Pickett Real Estate Group in 2022 and beyond! We cherish our relationships with you and wouldn’t be here without all of you!
Our team had a great year full of firsts. We had a great client event at the Giants game where over 116 of our past clients were able to come celebrate their real estate successes with us. We held two separate coat drives for St, Vincent De Paul where we were able to donate over 400 lightly used coats. We did two separate community book swaps where we were able to meet so many new friends and swap out old books for new ones.
In 2023 we have several big events planned and can’t wait to share them with you! Have a healthy, and safe 2023 and please call us if we can be of any assistance to you!!!
Thank you!
Kevin Pickett |
|
If you or someone you know needs help buying or selling Real Estate, contact us for a complimentary consultation! |
|
|
|
