Our friend and client Bhek Morton bought a house with us a year ago. She also runs a home baking business based in San José. The other day, we placed an order, and Bhek brought us our fresh-baked bagels herself. They were still warm from the oven! We highly recommend the Bhekery for a unique Mother’s Day treat.
Over the past 40 years, the Bay Area housing market has seen at least four major booms. Every time, experts said the good times would never end. Every time, they were wrong. Economists call this “irrational exuberance”.
Each of these booms – or upcycles – have been followed by market corrections, sometimes with devastating consequences, such as the Great Recession. Every time, experts predicted an endless downward spiral. Every time, they were wrong.
Like any industry, housing markets run in cycles. But despite all the booms and busts, our local market has always come back stronger than ever.
Whether it’s our status as a financial, innovation, and cultural center, spectacular natural beauty and open space, and diversity, inclusion, and opportunity, Silicon Valley continues to be one of the world’s great metropolitan areas.
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?
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.
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.
Did you know that Cinco de Mayo is more than an excuse to drink and cruise around? It commemorates the anniversary of Mexico's unlikely victory over the French army at the Battle of Puebla in 1862. Here’s the whole story.
The numbers are in from March, and sales of single family homes remained slow in Santa Clara and San Mateo Counties, down as much as 40% year over year, with median prices 13% below what they were a year ago. But properties are spending more time on the market as buyers are still wary of high mortgage interest rates.
