East Bay Market Update - September 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.

Fall Market Update Given all of the frenzy over the anticipation and reaction to the Federal Reserve Bank’s funds rate cuts last week, we thought we’d start this month’s newsletter with a word from our local mortgage expert, Brady Thomas of LaSalle Mortgage: “The Fed did what we all hoped for — they cut the Federal Funds Rate by 50 basis points...but...the market did not cooperate, ” says Thomas. “After the cut, we saw mortgage rates move up (not down as expected). The reason for this rise in rates, even though we got the ‘big cut,’ is that the Fed was not as forceful as many had hoped in telegraphing aggressive future cuts. While we got the win in the moment the market is grappling with the idea that the long-term benefits are not as strong as we had hoped.”

At his press conference, Fed Chair Jerome Powell hinted that we might see more cuts this year. While he seemed optimistic about that possibility, he reiterated that future data would determine when and if those cuts are made. East Bay High-End Sales Trends Over the last seven years, we have seen a notable increase in the number of high-end sales in the Berkeley and Oakland markets. We saw a dramatic increase in sales over $4M in 2021 and 2022. This was likely a combination of low interest rates and a Covid effect. Sales of higher-end homes seem to be trending down

since their high in 2021. Perhaps as a result of higher interest rates and other factors. Plastic and Carbon Emissions We’ve been thinking about the ways we could reduce plastic use in our homes. The effects of single-use plastics are far-reaching and impact the environment, human health, and wildlife. One aspect of the damage caused by single-use plastic is the effect on climate change. Plastics are made from petroleum and natural gas, both non-renewable fossil fuels. The production, transportation, and disposal of plastics contribute to greenhouse gas emissions. It’s estimated that by 2050, the plastic industry could account for 20% of the world’s oil consumption if current trends continue. (Source: UN Environment Programme). The entire lifecycle of single-use plastics—from extraction and production to disposal—results in significant carbon emissions, contributing to global warming. Plastic waste in oceans also interferes with the ocean’s ability to absorb carbon, further

exacerbating climate change. It isn’t always easy to significantly reduce our reliance on single-use plastic, but it isn’t impossible. The following tips for the kitchen are a great place to start. In the kitchen, use glass, stainless steel, or ceramic containers. Mason jars and ceramic bowls with lids work well for food storage. Avoid plastic wrap: Use beeswax wraps, aluminum foil, silicone lids, or cloth covers to cover food instead of plastic wrap. Buy in bulk: Purchase items in bulk to reduce packaging waste. Bring your own glass jars, cloth bags, or stainless steel containers to refill at bulk stores. Re-Up Refills on College Ave. or The Filling Station in Berkeley are both great options for refilling products. Choose natural sponges and brushes: Use compostable sponges, wooden brushes, and dishcloths made from natural fibers like cotton, hemp, or cellulose instead of plastic-based scrubbers. Avoid single-use coffee pods: Use a French press, stainless steel pour-over, or a reusable coffee filter to make your coffee.