Dear friends,
Each year, right after during Labor Day, we experience a new real estate market. Since bringing new listings to market in the summer has tended to be risky, especially in August, many sellers wait until September to list their homes, often resulting in a deluge of new inventory in the weeks immediately after Labor Day. This year we’ve had higher than normal inventory all year, and now we are experiencing an especially high volume of new listings, with the corresponding lowering of the numbers of offers for most properties, and in many cases, lowered prices as compared to similar sales in the spring.
This year we are actually experiencing an additional triple whammy of market softening! In addition to the normal Autumn onslaught of new inventory, many buyers have been waiting to buy until mortgage interest rates come down to the anticipated levels. We should see more buyers returning to the market after yesterday’s FED announcement of a reduction of rates by half a percentage point, to 5.0%. For more details, see the Mortgage Update later in this newsletter.
Given that this is an election year, some buyers, especially first-time buyers, are waiting until after the election to make a purchase. For many buyers, the election simply adds to their anxiety about making this major life decision without the certainty of who will be leading our nation. For most of us, there will of course be a significant emotional response to the result. But I am hearing about some buyers who are committed to leaving the country should #45 become #47. Let us pray that does not happen!
But this year, we have another significant factor impacting buyers: the uncertainty of whether the seller will be paying their buyers’ agent commission for any particular home that they decide to pursue. So far, the anecdotal evidence from colleagues, and from both my most trusted title officer and my favorite lender, is that, in the vast majority of transactions since mid-August when the new procedures went into place, sellers are continuing to pay the commissions. A few exceptions have occurred in transactions involving high-end homes, where the buyers were paying cash in very quick transactions. It’s too soon to know what will be the long-term impact, but it does indeed add a further element of uncertainty and complexity in the minds of buyers right now. See more on this topic in the next article.
I am in the final days of getting a new listing ready for market after working on this home for months! It will be fascinating to see how this trifecta of issues impacts my North Berkeley listing. Normally I would be feeling quite confident that this property would get an enthusiastic response. This 1920s bungalow has been recently transformed, being reimagined with an opened, updated kitchen while keeping its period charms. There’s a built-in in the dining room, shelves flanking the fireplace in the living room, coved ceilings, and hardwood floors. The bathroom has been tastefully updated, an interior washer/dryer installed, and the home has been painted throughout.
This bungalow is not large (~1250 sq. ft.) but has some highly desirable features. In addition to two bedrooms there’s a “plus-room” at the back of the home, ideal for an office or nursery. There’s also a recently updated garage which now sports a newly poured concrete floor, French doors, insulated and finished walls, and recessed lighting. The plumbing and electrical have been updated, and the roof replaced in April. An overgrown back yard is now an open and inviting space, with new fencing, a patio area and raised veggie beds, plus that signature of every Berkeley garden: a Meyer lemon tree! It was important to me to specify that a significant portion of the planting would be edibles or California Natives. And this home now has efficient heat and air conditioning, thanks to a newly-installed heat pump system.
The adage “location, location, location” is still crucial, and it would be tough to beat this location! Just a few doors away on this tree-lined street is Andronico’s for grocery shopping! Buyers will find multiple restaurants and boutiques, a bookstore, post office, and options for great pizza, coffee, bagels, ice cream and super pastries nearby and that’s just within the first block of Solano Avenue! In three directions, buyers will find an abundance of absolutely awesome amenities in this Northbrae location, which is both transit-friendly and food-friendly!
If you know anyone looking to purchase in a wonderfully convenient location, this home has only one step to the front door, and has off-street parking for several cars. You can share that I’ll be holding 940 Fresno Avenue open on Sunday afternoons, September 29th and October 6th. Later this week, I will be having the photo shoot, and am finishing up the script for the video tour, so by next Thursday the 26th the website should be up and running at www.940Fresno.com (but not quite yet!).
As the weather has turned a bit, the light changes and our days are shortening, it’s a good time to be reminded of some basic home maintenance tasks. Maybe you have your own schedule, but let this be a gentle nudge to take care of these items before the rains come, and the cold weather really sets in:
- Clean gutters and downspouts to prevent water damage. Consider adding gutter screen guards if you don’t already have them installed. They really do help keep leaves and other debris out of your gutters.
- Check and seal windows and doors to improve energy efficiency.
- Test smoke detectors and carbon monoxide alarms. If you aren’t already using photovoltaic smoke detectors, switch to those now. Or better yet, consider upgrading to hardwired systems.
- Replace the filter in your furnace, and schedule a furnace inspection for safe and efficient heating.
If your furnace is more than a few years old, consider upgrading to an electric heat pump system. Not only are they much more efficient, you will also have air conditioning at no extra cost! Given the temperature differences we’ve experienced with climate change, you might be much more comfortable with built-in air conditioning! If you aren’t already fluent in understanding heat pumps, you may enjoy this video, produced by one of my Climate Action Committee colleagues.
If you are considering upgrading to a heat pump, be sure to use a knowledgeable, experienced installer. I can highly recommend Larry Waters of ElectrifyMyHome. He has been following the path of heat pump technology for decades. You do NOT want to use someone who is just installing one of their first heat pumps! An expert like Larry can also guide you through the numerous rebates and financial incentives available now for moving to efficient electric systems!
As many of you know, this coming Sunday, September 23rd from 1 – 5 pm is the annual Berkeley Architectural Heritage Association historic house tour, this year entitled Rocks, Gardens, Houses, and a Fountain. You will enjoy seeing eight homes and several gardens in the Northbrae neighborhood in styles ranging from bungalow, brown shingle and Prairie. Homes designed by noted architects will be on tour, including Bernard Maybeck, Julia Morgan, John Hudson Thomas and Olin S. Grove. If you stop by the Maybeck on Shattuck from 1 – 3 pm, I will be delighted to welcome you there, as part of my docenting duties! Click For tickets and info. And there may still be slots for volunteers (who work 2-hour shifts in exchange for admission to the tour). Write to victoria@berkeley.edu if you are interested.
For a real garden treat, I urge you to visit the Garden Center at Lake Merritt within the next week or two to savor the amazing dahlias in bloom! I was fortunate to attend a talk by Chris Dix, a master dahlia grower who maintains many of the dahlias in that garden, and his plants are remarkable. I learned that there are 30 different forms, and sizes from one inch to more than ten inches across! The garden is open every day 8:00-3:00 pm, and until 4:00 pm on weekends. There is a Bay-Friendly section, a bonsai garden, as well as Japanese, succulent, edible and pollinator gardens. The Garden Center really is a hidden gem!
And here’s advance notice of a special event next month at the Garden Center: The Autumn Lights Festival, held October 17-19. There will be 75 illuminated art displays lighting up the Garden each evening from 6-11 PM. Evidently, tickets are expected to sell out quickly—so I’m buying mine now!
And for those who enjoy following our local politicians, I will be interviewing our California Senator Nancy Skinner at the Hillside Club (and online) on Monday, October 7th at 7:30 pm. I first met Nancy through our shared interests in environmental issues years ago. She has served as a member of the Berkeley City Council, East Bay Regional Parks Board, and the State Assembly before becoming the Senator for this area of the East Bay. I will lead a behind-the-scenes discussion with her, addressing successes and challenges in shaping legislation, and her suggestions for the future impact we can achieve as engaged citizens. If you have specific questions you’d like the Senator to address, let me know! The Hillside Club is located at 2286 Cedar St. in Berkeley. Click here to reserve a spot (there is no charge for the event) or to receive the Zoom link.
It would be lovely to see you there!
All the best to you in your Autumn adventures!
Arlene
(a photo of me and Nancy Skinner in 2012, when I received the Realtor of the Year Award. We’ve each changed a wee bit!)
