'The coldest winter'; Rising interest rates cool off Bay Area real estate market

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The pendulum is shifting in what many have described as a 'roller coaster' real estate market. Sellers are no longer in the driver's seat, and buyers have the edge.

But that doesn't mean the market is favorable for buyers right now, said Daryl Fairweather, the Chief Economist for Redfin.

"So, all of those things are more positive for buyers than they were earlier this year. But when you look at how expensive it is to buy a home, it's hard to feel like buyers are better off now than they were earlier this year." With the exception of the initial three-month lockdown in 2020, home sales in October were at the lowest level since February of 2008, according to the latest data from the California Association of Realtors.

"Winter is always a slow time for home sales, but this time, it's like the coldest winter ever in terms of how many homes are being sold. It's just not much activity happening with higher interest rates," Fairweather said."We actually saw a record share of home listings being cancelled – taken off the market – last month in November."

 

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