I'd like to share my philosophy of our potentially declining market as the news is full of doom and gloom regarding real estate. There is a quote by John F. Kennedy that "a rising tide lifts all boats," but the opposite is also true. I have had several conversations with potential sellers recently who are concerned that they "missed the market" of record high selling prices in 2021 and early 2022. That may be true, but these sellers will also be buyers as they move on to their next home and phase of life. They will sell for lower than they might have, but they will most likely be able to buy their new home at a reduced price from what they would have paid. Selling at a lower price will reduce the capital gains they will need to pay and purchasing at a lower price may reduce future property taxes. (I say may because some sellers may be able to take their current property taxes with them... a story for another day... see Proposition 19).

As our inventory is still so low, it's hard to say how hard our market will be hit in early 2023. A home in Moraga Country Club went pending in 3 days last week. Interest rates are expected to rise this year, but only by a very modest amount compared to 2022. A saying in the mortgage community right now is "marry the house and date the rate." The expectation is that mortgages can be refinanced as rates come down. I saw an ad during the 49er's game this weekend (:() for a national lender who was throwing in a free future refinance as part of the current mortgage product. Our desirable location and excellent schools will continue to bring buyers to our market.

Wishing you a very happy and healthy 2023.