Piedmont Market Update - September 2024

Your Trusted Piedmont Real Estate Team – Buy or Sell with Confidence

Thinking of buying or selling a home in Piedmont? At Calia Homes, we specialize in guiding East Bay clients through the unique Piedmont real estate market with care and confidence. Whether you're searching for your dream home on a quiet tree-lined street or preparing to sell a legacy property near Piedmont Park or Crocker Highlands, our experienced Piedmont Realtors provide trusted advice, deep local insight, 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.

Piedmont High-End Sales Trends

In looking at Piedmont sales data on the MLS, we saw an interesting trend in high-end sales data. The number of homes that sold for over $5 million dramatically increased in 2021, 2022, and 2023 then starkly dropped off again in 2024. While interest rates may partially explain the drop in sales in 2024, given that rates were similar in 2023, rates may not tell all of the story. Also interesting to note, is that there are five listings over $5 million on the market today; several of which have been on the market for over a year.

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.