Inflation, Interest Rates, Appreciation Rates and Luxury Home Sales Changes since the Pandemic

Inflation, Interest Rates, Appreciation Rates and Luxury Home Sales Changes since the Pandemic

  • Alexander Fromm Lurie
  • November 16, 2023

The inflation reading for October, released yesterday, declined - from 3.7% to 3.2% for the overall index, and from 4.1% to 4% for the "core" index - fueling a continuation of the very dramatic stock market rebound that began on November 1st with the Fed's pause on rate hikes.



Soaring stock markets:  The percentages below reference changes in the stock market indices since the year began, but one can see the tremendous jump that has occurred in the last 2 weeks. 



The daily average interest rate - illustrated below - is roughly where it was after the big decline in early November (after the Fed announcement of a continued pause in Fed benchmark rate increases) - substantially down from October highs. The 11/15/23 reading was 7.45%. The new weekly average reading from Freddie Mac comes out tomorrow, but based on interest rate changes over the last week, it seems likely to stay relatively close to last week's reading (7.5%). 



Freddie Mac's weekly average reading will be updated tomorrow, 11/16/23 @  https://www.freddiemac.com/pmms

Jumbo loan rate chart:  As of yesterday's reading, running at about 7.6%.



4 charts from an updated Bay Area market survey. (PDF & JPGs are in this folder). The survey includes several comparisons of our current market with the pre-pandemic market in 2019. I've included Sacramento County in the first 3 charts below. 

Median house sales price appreciation since autumn 2019: 



Comparative median $/sq.ft. house values: 



Percentage home sales declines - in # of residential sales reported to MLS - since autumn 2019: 



In this YTD comparison with 2019 luxury home sales, the "luxury home" category is defined as $5 million+ in the 4 most expensive counties (SF, Marin, Santa Clara, San Mateo), and as $3 million+ in the other counties. 



The national unemployment rate ticked up slightly in October - which financial markets liked since it indicated some cooling in the economy, which presumably influenced the Fed in their decision not to raise the benchmark rate - but remains close to historic lows. 



October unemployment data for the Bay Area has not been released yet, but through September, the general picture is similar:  Close to historic lows.



Link to full compilation of macroeconomic charts

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Meet Alexander Fromm

Alexander Fromm Lurie | Founder | Real Estate Advisor is a highly accomplished San Francisco real estate professional and the leader of The Lurie Group, a top-performing team recognized among the top 1% of agents in the city. With over a decade of experience in the real estate industry and California DRE License #01952347, Alexander has built a reputation for delivering exceptional results, with hundreds of homes sold and over $1 billion in total sales volume. Born and raised in San Francisco, he brings deep local expertise, generational knowledge of the Bay Area, and a strong connection to the community into every client relationship. His approach goes beyond transactions—focusing on helping clients build meaningful connections to neighborhoods, schools, and local culture while navigating the buying or selling process with confidence.

Alexander’s background in management consulting and entrepreneurship further strengthens his strategic approach to real estate, allowing him to provide clients with a competitive edge in pricing, negotiation, and marketing. Known for his integrity, discretion, and client-first mindset, he continues to be a trusted advisor for buyers, sellers, and investors across San Francisco’s dynamic real estate market.

Alexander Fromm Lurie

Founder | Real Estate Advisor
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01952347
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629 Divisadero Ave, San Francisco, CA 94117

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