Spring has definitely sprung as far as the real estate market is concerned. Right now, homes are selling at record paces, inventory is extremely low, and buyer activity is high.

At 0:35 in the video above, you can see a chart that tracks the inventory, sales, and pending sales in our market. There are currently 1,205 homes on the market, whereas at this time last year there were only 1,049 available. In terms of pending sales, there are 1,955 currently, and there were 1,774 last year. This year, 1,503 homes have sold compared to 1,570 sales in spring 2021. We're seeing more activity and sales this year than last year.

The next chart shows the average price of homes per square foot. Prices have increased significantly; now they’re selling for an average of $342 per square foot. In some neighborhoods, prices have appreciated between 20% and 35%—that’s crazy!

Next is a graph that shows the average list-to-closing ratio. Homes are selling for 102% of their list prices on average, and the average number of days they spend on the market is only 20 days. That shows that sellers are encountering multiple offers when they list.

"With the increased activity and sales this year, it looks like the 2022 market is trying to outpace 2021."

In terms of inventory based on closed sales, we still have less than one month of supply. Remember that a seller’s market has three months or fewer, a balanced market has between four and five months, and a buyer’s market has more than five months of inventory.

So what does this mean for you? Well, keep in mind that interest rates are starting to increase this year. If you’re a buyer, there has never been a better time to buy. Rates aren’t going to get any lower than they are right now, so take advantage by locking in a low rate soon.

If you’re a seller, you should know that we can predict how long these high prices are going to last. That’s why now is a great time to take advantage of the equity in your home and the high buyer demand in the market. You can sell your home in record time and for top dollar, especially given how many cash buyers are purchasing homes in the Bay Area at the moment.

If you have any questions about the market or how conditions affect your real estate plans, don’t hesitate to reach out to us by phone or email. We’d love to help you.