East Bay Market Update - September 2023

Rate Hikes End Eleven Years of Appreciation

In 2022 and 2023, the Federal Reserve increased rates 11 times. As a result, these interest rate increases turned around 11 years of appreciation in East Bay cities that began in 2012.

In Piedmont, when we look at sales data going back five years to January 2019, we see a steady upward appreciation trend until 2023. We do not yet have a full set of data for the current year; however, to date, homes in Piedmont appear to be selling on average for 10% less than they did at their average high sales price in 2022. Even with this, in Piedmont, we have seen an average annual appreciation of approximately 5% since 2019.

In Oakland, we also see a steady upward appreciation trend until 2023. Like with Piedmont, we do not yet have a full set of data for this year; however, to date, homes in Oakland appear to be selling, on average, for 7% percent less in 2023 than they did at their average high sales price in 2022. Even with this, we have seen an average annual appreciation of approximately 4% in Oakland since 2019.

In Berkeley, we continue see a steady upward appreciation trend line until 2023. It appears that for this year, Berkeley has seen average home prices drop nearly 13%, which is the largest drop of the three cities we are tracking. Berkeley has seen an average level of appreciation of 3% over the past five years.

Preparing for the New Season

As summer winds down and we head into fall, spending some time on preventative maintenance for your home is essential. We may not need to worry about frozen pipes in the Bay Area – but rain, inefficient furnaces, and dirty fireplaces can all lead to unwelcome surprises. Please see the list below for some tips on protecting your property so you can enjoy a cozy winter season. If you need a referral for services, please reach out, or you can check caliahomes.com for our Homeowners Services Guide. 

• Check your roof and clean rain gutters to avoid pooling water and leaks.
• Ensure no deficiencies exist in your home’s siding where water might enter.
• Consider using an air purifier as we tend to spend time indoors with windows closed during the cold months.
• Prune trees that may be at risk of falling during wind and rain.
• Have your fireplace and chimney inspected and cleaned.
• Check the batteries on your smoke alarms and CO detectors.
• Clean and cover patio furniture.
• Recaulk your windows to avoid heat loss.
• If you don’t already have a programmable thermostat, consider installing one. Smart thermostats are beneficial for efficient furnace use, saving on energy bills.
• Change the filter in the furnace.
• Spring isn’t the only time to clean; a general clean-up in and out is a good idea to prepare for fall and winter.

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