On this Memorial Day Weekend, we are bringing you the May 2023 housing market update in charts. Our local Bay Area Market performed well last month, with homes selling sooner after hitting the market, than they did just a couple months ago. (see the end of this newsletter for area specific numbers).
While mortgage for loans less than $1,089,300 (jumbo loans) again touched 7% * this past week, we are not in a crashing housing market here in the Bay Area. We continue to see multiple offers on homes that are priced appropriately, and the number of days between coming on the market and when a home is under contract is contracting, as is typical for the busy buying season, which we are in. Let's dive right in.
The chart below shows the number of homes selling across the US at 4.28 million in April, down from a year ago, because of fewer homes available for sale, and higher interest rates that has made affording the same home a lot harder. Sales are down here in the Bay Area due to limited options for homebuyers and the tech layoffs (and down payments tied up in under water stock options or stocks right now) have signaled a pause for some families that would previously have transacted during the Spring and Summer home buying seasons.