Local Market Stats
Headwinds in the real estate market? We are seeing fewer offers and the list to sales price ratio has dropped slightly but on average, single family homes are still selling 5-10% over asking price and by any statistical measure the market is still hot. I’ve even seen a few expired listings and homes that sold for less than asking price, but not enough for a trend – yet.
Where are we in the “bubble?” I’ve been in a few in nearly 30 years in the business. I think we are getting closer as affordability percentages drop. Would I buy a house today if I could afford it? Only if I plan to keep it for 10 years or more. Average home prices in California are now over $800,000, more than double the national average. Is it any wonder why businesses are moving to Austin and Raleigh? Sellers are still the big winners in this market unless they are buying locally.
If you are looking to sell or buy contact me for a financial evaluation of the pros and cons of selling or buying now.
Some statistics stand out:
Danville – with an average sales price of over $2.2 million
San Ramon – 36% increase in average sales price YTD
Dublin – Just 2 single family homes on the market at the end of October
Pleasanton – 31% increase in average sales price YTD
Livermore – Average SP of $1,218,791 is the lowest of the five cities listed
Inventory of homes still extremely low- less than a one months supply
Homes still selling above asking price but fewer offers
Affordability index in Alameda County just 18% could afford the “median” priced home of $1.3 million and the payment of $5990 PITI
27% year-to-date increase in average sales prices in the five East Bay cities
August 2021 and the appreciation continues. Average sales prices in Danville and Pleasanton exceed $2 million. Livermore is the most “affordable” at $1.2 million. I see headwinds on the horizon. Buyer burnout is happening. Fewer offers on each home, slight increase in days on market. Still early stages but bubbles don’t burst, they tend to deflate slowly.
Average Sales price in Danville are up over $500,000 from August 2020 to August 2021. This type of price appreciation is not sustainable, and with only 23% able to afford the “median” priced home in this area despite the low interest rates, declining affordability is never good for the economy……I’ve been in this kind of market before….declining affordability, massive price spikes…..remember 2008? I suggest that buyers buying today should plan to keep your homes at least 10 years. The last peak in 2006 it took 10 years until 2016 in the East Bay for prices to catch up to 2006 levels.
Seniors looking to sell, now is an amazing time to get top dollar and maximize equity. Let me show you how.