Steve Spiro’s Blog

Home sales in California have reached their highest level in 8-mo in May. However, overall home sales are still lower yearly. Home sales: Statewide: ↑ 10% MoM Bay Area: ↑ 30%

The California’s market is adjusting to higher mortgage rates and rising inflation. Home prices vary, with some areas transitioning from a seller's market to a more neutral setting. Median sales prices have decreased between 2022 and 2023, making homes slightly more affordable.

The California commercial real estate forecast shows a mixed outlook due to rising interest rates and economic uncertainty. Office development remains cautious due to the impact of high interest rates on market fundamentals. Multifamily housing demand stays strong in metropolitan areas, driven by state laws and growth in inland parts of the state.

US home builder sentiment reaches a 10-mo high in May due to increased demand and tight housing supply.The National Association of Home Builders/Wells Fargo Housing Market index rises 5 points to 50.

The Middle Class Housing Act of 2022 (SB 6, Caballero) went into effect on July 1, 2023. It allows developers to build qualifying multifamily projects without rezoning on sites currently zoned for commercial retail or parking use, as long as they comply with all local zoning code requirements. The project must be at least 50%…

Hawaii, with avg price of $681/sq ft California, with avg price of $425/sq ftMassachusetts, with avg price of $417/sq ft New York, with avg price of $416/sq ft

The Fed hiked its key interest rate by 25 bps to 5.5%The Fed expresses doubt that inflation will continue to decrease towards its 2% target without implementing another rate hike.

The US housing market is missing 320K home listings valued up to $256K. That is the affordable price range for middle-income buyers. Middle-income buyers can afford to buy 23% of the listings in the current market. Most affordable homes available for middle-income buyers are in Toledo, OH.

This report from a real estate listing website found that rent prices have dropped by 0.5% across the U.S., with the median asking rental price at $1,739. In California, the median rental price has increased in San Jose, but other cities have experienced decreases, with the western metro area being 3% lower than last year.…

Limited inventory prevents significant drops in home prices despite fewer buyers. Fewer new listings lead to multiple offers and higher prices. Some indicators suggest a gradual cooling of the housing market. Recent research suggests a nationwide drop in prices may take time.