The Russian invasion of Ukraine has taken a human toll that is hard to fathom if you’re not there, but you don’t have to be in Kyiv to feel the effects of the war on the free market. Inflation is on the rise, and supply chain shortages have driven prices through the roof for staples like gas, wheat, and fertilizers. And it’s no different for construction materials and home services like tree trimming. Be ready to pay extra… and wait.
Home and condo sales in January saw more of the same trends in San Mateo County that we’re seeing everywhere else in the Bay Area: Low inventory leading to rising prices and properties spending less time on a competitive market. Here’s a glimpse at how the numbers compare to one year ago.
The factors at play when it comes to buying and selling a home can be overwhelming for even the most seasoned real estate professional. And that’s before you consider factors specific to the Bay Area market, which run the gamut from the ebb and flow of the tech industry to federal immigration policy.
As you may have heard (from reading this newsletter), housing inventory is getting short just about everywhere, and especially in Santa Clara County. January continued to see reduced stock, shorter times on the market, and higher median sales prices compared to one year ago. Things are a little more chill on the condo side of the market than with houses, but not by much.
According to Freddie Mac, the average rate on a 30-year fixed mortgage hit 3.92% this week, a height that hasn’t been seen since May 2019. That’s up more than a full point from 2.81% one year ago. This means a rough housing market is about to get even rougher, as many first-time homebuyers have to fend off competition and negotiate a loan that doesn’t put them in debt for the rest of their lives. Learn more from the New York Times.
