Demand & Supply

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As higher mortgage rates become the new normal, more buyers are entering the market. But the same high rates are causing many potential sellers to stay in their homes with lower long-term fixed payments. When will supply catch up with demand?

CHIC (Pearl)

I get the feeling we’re almost there now. New listings, offers, and sales prices may be down year over year, but they’re all on the uptick so far in 2023. Open houses and broker tours are packed, and homes are selling quickly with multiple offers. Everything seems to be moving in a positive direction.

GEEK (Kevin)

Feelings are fine, but I need more data before I’m willing to say the market is on its way back. We could also be in the middle of a long-term malaise that will only be resolved when things explode or fall apart completely. Neither would be surprising at this point. But here’s hoping for an explosion.

Positive Signs

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Following a slow second half of 2022, buyer demand appears to be rebounding so far in 2023, with open houses, offers, overbidding, and absorption rates all on the rise. Median prices have yet to recover from recent declines, but those drops are based on numbers from the peak of a 10-year market cycle. And it’s only a matter of time before increased demand and a continued inventory shortage drive up prices again.

The proverbial pink elephant in the room is unpredictable interest rates, which have put a chill on the housing market. Spring is typically the most active period of the year for sales, so we should learn more in the next few months about where we’re headed.

An Urban Oasis

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Welcome to an Urban Oasis! This spacious condo with new floors, fresh paint, and plenty of natural light is conveniently located in the heart of Silicon Valley near major freeways, high-tech companies, and trendy shopping in Downtown Sunnyvale. It’s also close to nature, with a greenbelt of parks and trails and refurbished Fair Oaks Park in the neighborhood.

609 Arcadia Terrace #204, Sunnyvale, CA 94085

2 Beds | 2 Baths | 1,160 sqft | $899,000

Open this weekend: Fri 9am-1pm, Sat & Sun 1-4pm

Chic's Picks: Open Houses with Open Concepts

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Step inside these open houses with open concepts!

1472 South Wolfe Rd

Sunnyvale, CA 94087

5 Beds | 4 Baths | 3,180 sq ft | $2.999M

Open Sat 2/19, 1:30-4:30pm

2436 Laura Lane

Mountain View, CA 94043

3 Beds | 2 Baths | 1,434 sq ft | $1.898M

Open Sat 2/19, 1:00-4:00pm

1450 Padres Drive

San José, CA 95125

3 Beds | 2 Baths | 1,802 sq ft | $1.799M

Open Sat 2/19, 1:30-4:00pm

Geek's Number Talk: Market Opening Up

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Open house activity can provide a glimpse at what the real estate market will look like weeks and months into the future. A recent spike in open houses after a slow Spring coupled with increased consumer confidence in the wake of record-low 30-year mortgage interest rates means we can expect an uptick in demand throughout the summer months.

Open Houses per Week June 2021.png

If you’re interested in how the market is moving in your neighborhood, don’t hesitate to reach out. We’d love to talk with you about it!