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October 2023 Market Update

David Kim October 31, 2023

Happy Halloween, Friends! ๐ŸŽƒ๐Ÿ‘ป

It's hard to put a positive spin on recent economic and political realities. It's good news that Powell has signaled that the Fed will hold off on a monthly increase in the Fed rate, but doesn't change the basic situation of steadily increasing interest rates.

Current Market Trends: Single Family House in desirable locations still sells fast. Inventory is historically low as most of homeowners don't want to give up their low mortgage rate. Due to the low supply and high demand, house price stayed this year. Also, more all-cash buyers are looking to buy. As we get closer to the year end, market could be slower than before, and we see some houses didn't sell in the first week stay longer on the market.

Whether you are considering a real estate move this year or the next, we'd love to sit down with you and discuss your goals. Let's strategize and create a plan tailored to your specific needs and preferences. Don't hesitate to reach out to us at (650) 988-5114 to get started. Our dedicated team is eager to assist you in achieving your real estate objectives!

 

 

Monthly median house sales price since 1990: September 2023 

median price declined slightly from August, but was up 2.5% year-over-year. 

U.S. median house sales price appreciation since 1990. Over the longer term, homeownership has typically been a great builder of household wealth.

Months Supply of Inventory (MSI) measures the strength of buyer 

demand as compared to the supply of listings for sale. 

According to NAR, The national percentage of all-cash buyers in September was at its highest point in 8+ years. An increased percentage of total sales does not necessarily mean an increase in the actual number of all-cash buyers. But as a share of the market, all-cash buyers are participating more actively than those requiring loans. I do not have a reliable source of updated local data on all-cash buyers. 

NAR released national pending-sale data for September today: Unsurprisingly, interest rate increases are hitting the market very hard. 

 

"All four U.S. regions had year-over-year declines in transactions....pending contracts remain at historically low levels due to the highest mortgage rates in 20 years," said Lawrence Yun, NAR chief economist. "Furthermore, inventory remains tight, which hinders sales but keeps home prices elevated."

Summary Points

Most people moving residence in the Bay Area move within the same county, to other nearby Bay Area counties - often an adjacent county, but with more affordable home prices or rents - or to the circle of even more affordable counties surrounding the Bay Area. However, there is heavy two-way traffic between Bay Area counties, including moves from less expensive to more expensive housing markets. And, of course, there are many other reasons why people move as well.

 

According to the U.S. Census estimates, of California residents who moved in 2022, approximately 80% stayed within the state.

 

When moving to other states, Bay Area and CA residents mostly choose those with no state income taxes (Texas, Nevada, Washington, Florida), other adjacent states (Arizona - with a very low state income tax rate in the country.)

 

People moving into California and the Bay Area come from everywhere, including a large number from foreign countries: As a percentage of the total population, the Bay Area has one of the largest foreign-born populations in the country. CA residents moving out of state also move virtually everywhere, nationally and internationally.

 

Engaging Reads: Dive Into These Articles!

1. WSJ article, "The U.S. Cities With the Most Cutting-Edge Tech Workers

...San Jose-Sunnyvale-Santa Clara ranked 2nd in both categories, and the San Francisco-Oakland-Berkeley metro area (which also includes Contra Costa, Marin and San Mateo Counties) ranked 3rd in both categories.

2. "America’s big-tech cities are thriving, not dying"

 "The latest data, drawn from analyses by Brookings Institution experts William Frey and Mark Muro, show that big tech cities such as San Francisco, Seattle and New York are significantly rebounding. Their population losses have abated, and they remain major hubs for innovation. In fact, big cities and their surrounding suburbs and rural areas greatly contribute to the strength of the U.S. economy and keep the United States at the global forefront of advanced computing and technology." 

3. "From doom to boom: AI is slowly re-energizing San Francisco"

https://www.washingtonpost.com/technology/2023/10/23/artificial-intelligence-san-francisco/ 

"Buzzy AI startups are landing big investments, drawing talent to the city and occupying more real estate...The recent boom in AI — led by advances in generative AI — is not only re-energizing this city’s tech community, but it is also triggering a movement of people to the city and office-space rentals by companies." 

*Subscription may be required to access the full articles.

Flipbook Reports by County

What We've Been Up To

FOR SALE | 880 E Fremont Ave, #313
Sunnyvale
1 Bed + 1 Den | 1 Bath
SOLD | 1174 Crandano Court
Sunnyvale
4 Bed | 2 Bath
SOLD | 3787 Silverlock Road
Fremont
3 Bed | 2 Bath
SOLD | 3061 Moss Landing Terrace
Fremont
3 Bed + Den | 3 Bath
 

Upcoming Local Events

'Vine To Wine' Food, Music & Makers Mart 2023: Mountain Winery, Saratoga

 

 

Sat, Nov. 4, 1-7PM

 

 

This event celebrates the end of Harvest and is where local wineries and wine makers are highlighted at the historical and gorgeous Mountain Winery in Saratoga. 

20+ wineries pouring, a variety of 10 passed gourmet bites, a bubbly and dessert wine bar, live music and a marketplace to shop for barrel furniture, wine-related décor and other crafts.
Ain’t Too Proud – The Life And Times Of The Temptations' 2023: San Jose

 

 

Oct. 31 - Nov. 5, 2023

Tues-Fri: 7:30PM

Sat: 2PM & 7:30PM

Sun: 1PM & 6:30PM

 

 

AIN'T TOO PROUD – THE LIFE AND TIMES OF THE TEMPTATIONS is the electrifying, new smash-hit Broadway musical that follows The Temptations’ extraordinary journey from the streets of Detroit to the Rock & Roll Hall of Fame.

 

[FREE event] Summer Opportunities Fair: Student Internships, Research, Volunteering & more

 

Sun, Nov 5 at 12:00PM

 

Join Insight Education on Sunday, November 5th, 2023 for the Summer Opportunities Fair! 

 

Calling all Students! 

Are you deciding what to do with your Summer 2024? 

Do you have questions on how to apply to some of the top internships and programs? 

Looking to get hands-on experience in a field of interest? 

Want to explore program options outside of just summertime?

 

 

 


 

Location: 

Outdoor in the Garden behind Insight Education HQ

1601 South De Anza Blvd, Suite 108 (1st Floor) Cupertino, CA 95014

Disney’s 'The Lion King' 2023

 

Wed to Sun, Nov. 22 - Dec. 30 Showtimes vary by date

 

 

For more than 20 years, the North American touring productions of The Lion King have been seen by over 21 million theatergoers. Having already played more than 9,000 performances in over 90 cities across North America, The Lion King now proudly returns to San Francisco’s Orpheum Theatre.

 

INFO & TICKET LINKS HERE
 

 

Location: Orpheum Theatre, 1192 Market St., San Francisco, CA
 

Questions? Please reach out to 650.988.5114 or send us an email at [email protected].


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