2022 Recap & 2023 Outlook

Kathy Vendel January 12, 2023

Northgate Team 2022 Highlights

Summary statistics for Kathy’s Northgate Team:

  • 22 Northgate homes sold in 2022
    • 3 homes sold > $1,000/SQ FT
    • 4 homes sold > $2M
  • 100% representing home Seller
  • 100% close rate (zero cancellations)
  • Multiple offers on all properties
  • Average days on market: 5 (vs. 16-day average of other agents)

2022 Northgate Market Recap

2022 saw a culmination of record prices and record demand for homes in Northgate following the two-year pandemic period in which remote work and historic low interest rates drove Buyers from the City and Silicon Valley to the suburbs in record numbers.

The Northgate team kicked off 2022 with three consecutive home sales with record-high > $1,000 Sold price/SQ FT and 20+ offers. This was followed by several sales over $2M for homes < 2500/SQ FT in the peak of Q1. In mid-March however, the market started to shift. Interest rates started to rise and tech companies started requiring employees back to the office. These two factors had an immediate impact on both Buyer demand and affordability, which resulted in a slower market continuing through the summer.  Interest rates continued to rise into the Fall and Winter to close out the year with a much slower market, evident in some homes sitting on the market 30+ days, with reductions in list price and some homes being withdrawn from the market all together.

As a result, average sale prices for the first half of 2022 looked very different from the second half.  However, Q4 prices were still significantly higher than the pre-pandemic period as shown here (including linear fit trend line for the 5-year period).

*Data Source: See end note below.

2023 Outlook

As we head into 2023, we will likely see more interest rate increases and continued economic instability.  While there is uncertainty about the impact of interest rates, recession concerns, and tech layoffs, homes in Northgate will continue to be in demand. Northgate is a highly desirable destination due to location, weather, parks, schools, shopping and proximity to BART and freeways.

Just as with the stock market, market timing is never a reliable strategy for home sellers.  Also like the stock market, housing prices in our community are reliably strong over the long term.  Here is a look at 27 years of sales data for Northgate homes (including linear fit trend line forecasting 3 years out).

*Data Source: See end note below.

Key Take-Aways for 2023 Home Sellers

1. Increased interest rates affect affordability – list price is a key factor in your success.
2. Fewer Buyers means less competition – you’ll need to the right strategy to attract Buyers to your home.
3. Your success is dependent on hiring a top agent with proven success in a changing market.
4. All elements of marketing plan must be perfected before putting your home on the market.
5. Flawless marketing and sales execution is key to your selling success!

If you are planning to sell your home this year, please schedule a meeting or call to discuss your goals.

*Data Sources: Report data is based on information from the Contra Costa Association of REALTORS® MLS as of 01/07/2023. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.

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