Is the Tri-Valley real estate market finally changing?

Warren Oberholser
Warren Oberholser
Published on March 13, 2021

Hi, I’m Warren Oberholser. I’m a realtor in the East Bay Tri-Valley area in Northern California. My goal is to help both buyers and sellers get maximum results for one of their biggest investments, their home.

Special thanks to David Stark at BayEast Association of Realtors

Before I start I want to acknowledge and thank David Stark at Bay East Association of Realtors for providing all the information I’m about to share with you.

Tri-Valley real estate market

So what’s going on with this crazy Tri-Valley real estate market?

Elephant in the room…Interest Rates

Well, let’s first look at what has happened since the beginning of the year. Then we need to address the elephant in the room, which is interest rates.

Historically, home sales are usually down in January. It makes sense because we’re just coming off the holidays. Inventory was slightly higher, which allows buyers more properties to choose from. However, this didn’t affect January’s home sales prices. They were still up compared to last January.

The number of home sales for this year in January compared to last year was up quite a bit. Both Dublin and Pleasanton sales volumes were doubled compared to last year.

What to take from this? We started off the year with more inventory than the last couple of months. However, the properties went pending twice as fast compared to last January. So both buyers and sellers were ready to do business.

Homes for sale inventory down over 50% in all but Alamo and Livermore.

Home prices reflect strong appreciation, especially in Alamo.

February compared to January, home sales are up considerably compared to last year, especially in Pleasanton showing a 92% increase.

Interest rates may affect the Tri-Valley real estate market

So what can affect this aggressive seller’s market in the Tri-Valley area?

Higher interest rates may limit financed buyer’s purchase price

Well, since the majority of these home purchases are financed, it’s interest rates. According to Freddie Mac survey, just from last week, rates went up approximately a quarter of a percent. So with higher interest rates, this means some buyers may have to lower their purchase price.

Interest rates may affect buyer’s debt to income ratio

The other issue with increased interest rates is the buyer’s debt to income ratio is affected since their monthly mortgage payment is higher. This could reduce the number of buyers who depend on financing. This wraps up my Tri-Valley real estate market review.

I hope you enjoyed this article. Please reach out to me directly for any questions you may have. Warren

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Hello…I work with both buyers and sellers in the Tri-Valley area of Northern California. The Tri-Valley is comprised of 6 cities: Pleasanton, Livermore, Dublin, San Ramon, Danville, and Alamo. To better understand what each city has to offer, I have created a Pros and Cons video and BLOG for each – (Pros & Cons for Pleasanton, Pros & Cons for Livermore, Pros & Cons for Dublin, Pros & Cons for San Ramon, Pros & Cons for Danville and Pros & Cons for Alamo). If you are thinking about purchasing or selling a home, please reach out to me by text, phone, or email. If it is convenient, I can schedule a Zoom chat so we can discuss your home goals. Wishing you all the best on your home journey. Cheers!

Warren Oberholser

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Warren Oberholser

eXp Realty

[email protected]

(925) 980-4603

DRE # 01861944

ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION CONTAINED HEREIN HAS BEEN OBTAINED THROUGH SOURCES DEEMED RELIABLE BUT CANNOT BE GUARANTEED AS TO ITS ACCURACY. SUBJECT MATERIAL MAY HAVE ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ANY INFORMATION OF SPECIAL INTEREST SHOULD BE OBTAINED THROUGH INDEPENDENT VERIFICATION.

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