September 2021 Housing Newsletter

MARKET UPDATE:

At the start of the year, the single-family home was the most desired choice of prospective buyers. As we head into the last quarter of the calendar year, Salma & Company thought it was important to look at exactly how the single-family home values have fared so far in 2021.

For the first nine months of the year, a total of 2,166 homes closed escrow, including any properties sold off the MLS, city wide. The average sales price was just over $2.3M and the average $/sqft was just over $1,605/sqft. If we look at data for the same time from 2020, the data will showcase just how prevalent the SFH choice has become to buyers. For the first 3 quarters of 2020, a total of 1,577 single family homes closed escrow, with an average sales price of $2,010,480 and an average of $1,011/sqft. Off the bat, if you compare the $/sqft from 2021 vs. 2020, you will see a nearly $600/sqft increase year-over-year. The proof is definitely in the pudding!

MARKETWATCH:

The Federal Reserve just met last week and if you are not familiar with the term tapering, allow us to explain. Federal Reserve Chairman Jerome Powell will put off announcing when the Fed will step down its bond purchases — tapering – as too many economic uncertainties abound.

While interest rate hikes were not expected, according to fixed income strategist Lawrence Gillum, the medium and long-term policy approach for the Fed remains unclear, even as the central bank appears to be getting closer to starting tapering and rate hikes. As quoted in TheStreet.com: “We continue to think the Fed will announce plans to taper in November with the actual reduction in bond purchases taking place in December. Of note though, through the Dot Plot, signaling on the future path of short-term interest rates continues to show the wide divergence of opinions on the committee..” As Freddie Mac’s chief economist noted to MarketWatch.com: “It’s Groundhog Day for mortgage rates, as they have remained virtually flat for over two months … (reflecting) the markets’ view that the prospects for the economy have dimmed somewhat.” It’s safe to say we will continue to keep an eye on all of this.

TO MARKET, TO MARKET:

Our featured listing this month NOW IN CONTRACT with multiple offers: a gorgeous, contemporary, tri-level townhouse condo located in Emeryville’s premier location at Pulte’s Elevation 22 Community. Detached on 3 sides, the property features a sun-drenched open floor plan, perfect for the serious entertainer.

The main level features an open floor plan living space, complete with a handsome kitchen boasting stainless steel appliances, a five-burner gas stove top, maple cabinets, granite countertops, and a kitchen peninsula that flows into the dining and living areas. A spacious private guest bath completes this level. Walk up the chic timber and steel staircase to the top level of the home, where you’ll find two en suite bedrooms. The primary bedroom features a private balcony while the other has partial Berkeley Hills views. On the lower level, there is a 2 car, side-by-side garage parking with a work bench area, a full-size washer/dryer, and storage. Directly adjacent to the Emeryville Greenway, this location is excellent for walking and biking to the town’s best restaurants and cafes.  A commuter’s dream location!