Summertime, and the living is…
It’s hard not to complete that sentence with the lyrics to the iconic Gershwin song. But it’s actually rare for summer to be easy for most people. Record high temperatures have made life in many parts of the world, the country, and our State truly miserable lately, and not just for a day or two, but for weeks at a time. A singing friend of mine in Puna, India experienced three weeks in a row of temperatures of at least 50C, or 122F. I can’t imagine! My father-in-law lives in Elk Grove, and boasts of never having turned on his A/C, though the temperatures in July started at over 100 and were at 114 several times in the first two weeks of the month.
I grew up mostly in Stockton and Lodi, and temps over 100 in the summer was one of several reasons I wanted to flee to Berkeley as quickly as I could. I left within a week of graduating high school, and at age 16 I immediately began my studies at UC Berkeley. I still remember the pleasure of being able to celebrate my August birthday not on a hot day, but in “Fogust” weather! I felt enormously grateful for the cooling fog that rolled in like clockwork this July 4th. It also obliterated many of the fireworks displays around the Bay, but not the ones I had mentioned last month as part of the Marin County Fair; there the skies were clear, and the fireworks were fabulous, as usual!
Summer in our real estate market is much like the summer weather in the Bay Area: diverse, even extreme, but not consistently hot. Every year, there is a point when even the most desirable homes no longer get the exuberant reactions that they would have received earlier in the spring. Sometimes this happens as early as April. For the past two years the spring market has extended later for the most desirable properties in Berkeley, Albany, Rockridge and Temescal. I’ll share more details of what’s selling in the next article. I know I, like many other listing agents, spend much of the summer getting properties ready to come to market after Labor Day when the autumn market opens. Right now, I am preparing a bungalow in an especially convenient North Berkeley location right off Solano Avenue.
When the change of market comes, it is usually just like the appearance of the fog: a quick and dramatic cooling trend. Exactly when or why it will occur is not something that can be determined scientifically. But I’m always checking in with listing agents to see what the level of interest is on key listings. Dropping numbers of packets out on attractive listings, and a subsequent drop in the number of offers received, is a key local indicator. Red Oak is unusual in tracking open house activity, and often, reduced open house attendance is a precursor to reduced numbers of offers. Now we are firmly in a summer market, with more inventory, homes staying on the market longer, and lots of price reductions.
I recently saw a meme on Facebook that was at least a humorous view of our summer market:
Sellers want it to be 2021 (when prices were at their highest). Buyers want it to be 2008 (when mortgage interest rates were at 3%). Buyers and agents alike would love it if the Fed would start to reduce rates to anything closer to 6%, in hopes of more buyers willing to actually buy. And buyers have become especially discerning (or picky) Any flaw and they’ll wait for the fall, or some indeterminate future. Perhaps after the election but let’s not talk about that!
July is also the Plastic Free Month. Of course, every month we should do what we can to reduce our use of plastic. But especially in July, I hope all of us can take some time to consider what more we can do to refuse plastic wherever possible. I suspect/hope I am preaching to the choir, and that many of you already buy fruit, veggies and other products in paper or in bulk, buy milk in glass bottles, or perhaps use wax-wraps instead of plastic film. If you follow the link to the Plastic Free July site (founded in Australia, but now a word-wide movement) you can get some other creative ideas for removing ever more plastic from your life, and our environment.
We are really fortunate that there are now three locations in Berkeley/Oakland where you can buy bulk products for cleaning, as well as personal care products, and even some food items. It’s best to bring your own containers to store them in, or if you forget, there are usually donated jars you can use. If you haven’t yet visited these stores, you are in for a treat!
The Filling Station, 2112B Vine St., Berkeley. Phone: 510-616-6533. Hours: Tuesday-Friday, 11 a.m.-6 p.m.; Saturday, 10 a.m.-6 p.m. Connect via Facebook and Instagram.
Fillgood, 1579a Solano Ave, Berkeley. Hours: Tuesday-Friday, 11 a.m.-6 p.m.; Saturday and Sunday, 10 a.m.-5 p.m. Connect via Facebook and Instagram.
Re-up Refill Shop, 6025 College Ave, Oakland Phone: 510-415-0956 Hours: Monday – Friday, 11 a.m.-7 p.m; Saturday & Sunday, 11 – 6 pm. Instagram.
Years ago, I made two permanent switches to my routines as a result of a Plastic Free July personal challenge:
— rather than buying shampoo in plastic bottles and paying for expensive water, I switched to shampoo and conditioner in bars, and I’m pleased to see that they are much more readily available (you can even find one brand at CVS).
—I buy milk in recyclable glass bottles from Strauss Creamery, and from it I also make my own yogurt in reusable glass jars, avoiding buying dozens of plastic tubs over the course of a year. I make it in a very low-tech way, keeping the warmed bottles in a simple insulated container, and leave it overnight. Very yummy, cost-effective, and I know exactly what’s in it: just organic milk and yogurt from a previous batch!
July for me is also a celebration of stone fruits being at their peak. I’ve made several delicious clafoutis out of combinations of plums, strawberries and cherries. And for me July is also jam-making month. So far, I have made ten jars of plum jam plus a dozen jars of plum chutney, and some strawberry jam will be coming up soon. I confess that having a bounty of summer fruits is one thing I DO miss from growing up in the Central Valley, perhaps the only thing I miss! Between windfall plums from all over Berkeley, our great Farmer’s Markets as well as Monterey Market and Berkeley Bowl, we all have access to lovely fruits. If by chance any of you readers experience a bounty of items from your own gardens that you are willing to share or trade for jam, let me know!
May you stay comfortable this summer, travel safely, and enjoy the bounty of your garden!
Arlene
How’s the East Bay Market? Well, it depends.
This has been a topsy-turvy year for the Inner East Bay real estate market. Higher interest rates, presidential elections and instability in the tech industry have competed against higher inventory and pent up demand. This has made 2024 activity somewhat inconsistent with previous years, and thus hard to project.
What we do know is that the number of available properties is at its highest level since Red Oak started tracking in 2012, yet the number of properties under contract is at its near lowest level (slightly better than the all-time low, which was last year). This leads us to a high supply/low demand dynamic, which puts downward pressure on prices and other key metrics.
We are seeing this broadly across the Inner East Bay. For example, the number of sales fell 14% between May and June (maybe because everyone and their neighbor were traveling?). Also surprising is the fact that median price fell 8% to $995,000 during the same timeframe (prices are still well above all years 2020 and prior).
But these trends are not bearing out when focusing on specific cities and neighborhoods. For example, the price of a 3BD single family home that’s 1,000-2,000 square feet increased 7% in Montclair, North Berkeley and El Cerrito (Q1-Q2, 2024 vs. 2023). And prices in Lower Rockridge increased 19%, while prices in Temescal increased 23%. This reveals the properties in certain areas that are priced and marketed well continue to attract significant competition.
What’s more, over the past 10 years, Inner East Bay cities have seen significant appreciation, from 38% in Piedmont to 120% in Hayward.
[ By watching the market closely, and using data analytics tools, I can help you reach your real estate goals, or learn more about the value of your home. I’m happy to help!
