February 2021 continues the trend from 2020. Increasing prices, low inventory, bidding wars on most homes. But are there warning signs the market may be reaching its peak?
First the highlights. Danville average sales price in February clocks in at an astounding $1,942,318. That’s a 30% increase over 2020. The “hotspot” is the $1.3-1.7 price range with 38 homes sold.
San Ramon finished the month of February with a miniscule 14 units (homes & condos) for sale, with the average sales price having jumped 30.66% year to year. Homes selling for 110% above asking price on average.
Dublin – 8 housing units for sale for a city of 60,000 people at the end of February. Average sales price $1,430,895.
Pleasanton– 17 homes priced between 2-3 million sold so far in 2021 compared to 5 in 2020. Again expect to pay well above asking price, 106%.
Livermore – 29 housing units in a city of nearly 90,000 people for sale at the end of February. Average sales price $1,122,129, an 18.36% increase over February 2020. Homes selling 107% above asking price
Clouds on the horizon? Maybe. Bubble bursting? Unlikely. Some things to keep an eye on in the upcoming months:
* Rising interest rates
* Decreasing affordability. Only 23% of buyers in Alameda County could afford a home
in the last quarter of 2020.
* Overheated market – homes selling for 105-110% of list price
* Buyer burnout – how many times can you make offers on homes”
* Proposition 19 – will create more housing inventory?
* $190,000 household income needed to purchase the “median” priced home in Alameda
Co. Essential workers priced out of housing markets that they work in
https://jeffkatzhomes.com/home-worth/ to get an approximation of your home’s current market value!