East Bay Market Update - August 2024

Thinking of buying or selling a home in Berkeley?

At Calia Homes, we specialize in helping East Bay clients navigate the Berkeley real estate market with confidence. Whether you're a first-time buyer searching for the perfect home near the Gourmet Ghetto or a longtime homeowner preparing to sell in the Elmwood or Northbrae neighborhoods, our experienced Berkeley Realtors offer trusted guidance, local expertise, and a people-first approach. With decades of experience and a reputation built on referrals, we’re here to help you make smart, successful real estate decisions in Piedmont and the surrounding East Bay communities.

As realtors, one of the questions we hear frequently is, “What’s happening with interest rates?” Well, we went right to the source and spoke with local mortgage broker Brady Thomas of LaSalle Mortgage, who explained the current environment of inflation, rates, and the job market. “With inflation falling from 9% to 3% over the past year, the Fed is nearing a point where they’ll feel comfortable reducing rates,” says Thomas. “The key hurdle has been the job market, which the Fed wanted to cool before making cuts. In the last two months, hiring has slowed significantly, and unemployment is up.” Brady continued to explain that the Fed feared cutting rates too soon would reignite inflation. But with unemployment rising, they now believe we’re moving past the inflationary pressure and are shifting their focus to avoiding a potential recession. This brings us to the expectation that rate cuts are imminent. We could see the first cut as early as September, with more likely this year and into early next year. Additionally, the expectation is that the ‘spreads’ charged by banks on mortgage loans will shrink. This reduction in spreads will lead to even

lower rates (beyond just the bond market improving).

Selling a House with Solar Panels With the knowledge that interest rates might be lowering soon, some readers could be considering a home sale. Lower rates spur action from buyers and help sellers feel more comfortable with their next purchase, whether downsizing, upsizing, or relocating. One feature of the home you may not think too much about is your solar power system. Keeping as much information as possible in your files is essential whether you own or lease solar panels. When properties change hands, the title company will want to see a purchase contract or lease agreement with the solar company, and you’ll need information about monthly payments, payoffs, number of panels, warranties, and more. It’s never too soon to ensure you’ve got the solar-related information you’ll need if you plan to sell at some point. Please contact us if you’d like to learn more about how to be prepared.

We thoroughly enjoyed National Night Out on August 6th. This annual event began in 1984 and is celebrated nationwide on the first Tuesday in August. It’s a great opportunity to get to know your neighbors better and a time to connect on neighborhood safety and communication programs. Some neighbors make it a block party, and some enjoy a simple get-together. If you didn’t plan or attend one this year, we highly recommend considering it for 2025. You can contact the Piedmont Police Department to register and get your block party on the list for roaming police and firefighters to attend. It’s a lot of fun and a great way to promote neighborhood awareness around safety.