As you will see in the following graph, the inventory levels of Antioch Real Estate for single family detached homes has tripled since March of this year.
In addition to the inventory of Antioch real estate increasing, we are seeing a shift in the market in that it has moved from a very strong seller’s market with a MAI of 94 to seller’s market with a MAI of 61. The MAI stands for Market Activity Index and is an indicator of the type of market we are in. Any number of 34 or greater indicates a seller’s market and the higher the number the stronger it is. The fact that the market is changing as inventory levels increase is not surprising because we are now seeing the supply moving closer to meeting the demand. Going forward I expect to see inventory levels dip and trend down through the winter and early spring. The MAI will most likely dip as well but remain in the Seller’s Market range. In 2014 we will see both inventory levels and the MAI increase beginning in March or April and should trend up through the summer.
In the following graph you will notice that the Median Sales Price for Pleasanton Real Estate has taken a huge drop as inventory levels spike. However there is another story that needs explaining.
Again, the median sales price for Pleasanton real estate has dropped from a high of $1,650,000 in March of this year to where it is now at just under $1,000,000. And you will also notice the the rise and fall of the median sales price was in direct relation to the amount of available inventory. However, the interesting thing about the market for Pleasanton Real Estate is that the average price per square foot has actually increase over 16% and seems to be rising. So what we can determine for the Pleasanton real estate market is that the majority of homes listed and sold are at much lower price points. In fact it’s still a strong seller’s market in Pleasanton and we continue to see multiple offers on nice,well priced homes. The difference is that the more expensive homes are sitting a bit longer. So my advice for potential sellers of higher priced Pleasanton Real Estate is that there is less competition now than we’ve had a several months. Going into next year we expect to see the average price per square foot continue to rise but more for those homes priced under $1,000,000, and even these should see a more modest increase of 3-4%.
The Fremont real estate market is exhibiting the same metrics as we are seeing in most east bay cities. That being inventory levels beginning to decline and the market shifting from a super strong seller’s market to a strong sellers market.
You may ask what the difference is between a “Super Strong” seller’s market and a “Strong” seller’s market. I define it as this; for Fremont real estate we have seen the Market Activity Index (MAI) peak at 90. The MAI is an indicator of not only what type of a market we’re in (Buyer’s or Seller’s) but also provides a gauge of high strong each market is. The MAI defines a seller’s market as any index greater than 34. For Fremont real estate we saw a number of 90 in May of this year. Since that peak we have seen the number decline to a low of 54 and currently resides at 60. The message from this index is that while it’s still a seller’s market there will most likely be an opportunity for those who have been experiencing difficulty over the last several months competing with multiple offers well over asking price. My recommendation is for those of you looking to buy Fremont real estate that you must have an updated and current pre approval from a good lender and be ready to write a strong offer when the right home is available. The risk of not acting quickly is that by most accounts we will see the market become a stronger seller’s market again beginning in Q2 of 2014. Additionally there is an expectation that we will see interest rates begin to climb in Q2.
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In many East Bay markets we continue to see prices increase however for Pleasant Hill real estate the average price per square foot has remained flat over the last 3 months.
As with most east bay area cities and towns, the average price per square foot for single family detached homes in Pleasant Hill experienced a significant increase during 2013. In fact for Pleasant Hill real estate we saw a 24% increase in average price per square foot during this year. This is not to say that the market has shifted to a “Buyer’s” market. It is still a fairly strong sellers market and by most accounts will remain so for at least through 2014. What it does mean though is that there seems to be a window for buyers who have been shut out do to the highly competitive markets we have been experiencing. It’s not to say that there won’t be competition for nice homes it’s just that we will be seeing fewer offers over the holiday season. If you’re someone who wants to buy a Pleasant Hill home I recommend that you make sure your loan Pre approval is up to date and that you can act quickly. Your best opportunity to buy will be over the next few months.
The amount of available San Ramon real estate for sale looks to now be decreasing as we enter the late fall and winter seasons. Additionally we are seeing the market shift and become a bit more favorable for buyers.
Going into the later months of 2013 we see inventory levels of San Ramon real estate beginning to decrease. This is to be expected as we traditionally see a slow down during the holiday season. What you should also notice in the following graph is that even though the amount of available homes for sale in San Ramon is beginning to drop it’s still significantly higher than last year at the same time. In addition we now see the MAI (Market Activity Index) dropping. The MAI is an indicator of the type of market we’re in so any number greater that 34 indicates a seller’s market and any number under 34 indicates a buyers market. As you’ll notice we had a very high MAI of 87 earlier in the year and now are at 58. So while it’s still a seller’s market, in San Ramon it has softened a bit. My recommendation for any one looking to buy San Ramon real estate is that you must be prepared to act quickly by having an updated pre-approval and by making sure that you react quickly to new properties coming to the market. What I expect to see for San Ramon real estate is a continued softening throughout the remainder of the year and into Q2 of 2014 with prices experiencing moderate increases. In late spring of 2014 we should see inventory levels and demand increase which will also cause prices and the MAI to rise.
Over the last couple of months we have seen both the median sales price and the average price per square foot decline for Berkeley real estate while active inventory levels climb.
For many east bay towns and cities we have seen inventory levels climb while the median sales price has declined. The difference with Berkeley real estate is that in addition to the growing inventory levels and drop in median sales price we also see the average price per square foot dropping. In many other east bay areas the average price per square foot is still increasing. The reason’s for the market for the other areas is that there has been a shift from higher priced homes to lower priced homes and in general homes are still selling well. With Berkeley real estate not only has there been a shift from expensive to less expensive homes, as a result of the increase in active inventory we are finding that the supply now outweighs demand. Going forward I expect to see inventory to level off as well as with prices. Going into 2014 we will see inventory levels pick up again in early to late Q2 with the average price per square foot seeing moderate increases throughout the year.
In the city of Livermore we see that the Market Activity Index (MAI) indicates that it’s not as strong as a seller’s market, and we are seeing inventory levels rise.
The Livermore real estate market has been on of many within the east bay that has seen prices rise over the past several months. In fact we have been experiencing price increases of up to 30% in some markets. These increase in prices has been happening in spite of inventory levels dramatically increasing as well. Typically you would find prices leveling off or declining as inventory increases however for Livermore real estate, and with most other east bay towns and cities, the demand has still outweighed the supply. The MAI is a way of measuring if the market is a buyer’s or seller’s market. Any number over 35 indicates a seller’s market. For Livermore real estate the MAI currently sits at 60. This still indicates a strong seller’s market however just 2 months ago the MAI was at 87. So we are now seeing a softening. So for you buyers looking to acquire a Livermore home I would encourage you to update your pre approval and to be prepared to act quickly if a home meeting your requirements hits the market. For people looking to sell a home it’s still a great time. We are seeing multiple offers however just not as many as we once saw.
As you see in the following graph the average price per square foot for Discovery Bay Real Estate continues to increase. Ironically we see the median sales price declining and the inventory increasing.
Over the past 9 months we have seen the average price per square foot for Discovery Bay Real Estate increase by an incredible 27% and in looking at the following graph it looks as if it will continue to climb. What we are seeing however is that there are more sales occurring at the lower price points which have caused the median sales price to drop significantly over the last 3 months. In addition we are seeing total inventory seeing dramatic increases while there are still multiple offers at the lower price points. In looking at the whole picture what is happening in Discovery Bay is not uncommon among other east Contra Costa County cities. That being more sales to first time home buyers and investors. Going forward I expect to see the average price per square foot experience moderate increases through 2014. Inventory levels will flatten out throughout the remainder of the year and into Q2 of 2014 then we’ll levels increase again.
The average price per square foot is still moving up for Walnut Creek Real Estate as we enter the fall and winter months.
As you see in the following graph we are still seeing prices move up for Walnut Creek Real estate. In fact the average price per square foot has increased by 30% from the same time last year. There are many reason’s for this strong seller’s market but the most obvious is the high demand for homes in the Walnut Creek area. We started the year with very low inventory and even though the amount of available inventory has doubled since March of this year, it is still not enough to meet demand. Another reason is the historically low interest rates which has made Walnut Creek real estate more affordable. As we get deeper into the fall and winter months I expect to see prices increase slightly while inventory levels off. Going into 2014 I expect to see things stay flat through Q1 and the beginning of Q2 with prices and inventory picking up in late spring and through the summer. Things that may effect this prediction for Walnut Creek real estate would be a dramatic increase in interest rates or government issues that have an effect on our economic recovery.
The average price per square for Castro Valley Real estate has leveled off after seeing a short decrease in August.
The following graph shows the average price per square foot for single family detached homes in Castro Valley. An unusual aspect of this graph was how quickly prices climbed in May. with many other east bay towns and cities there had been a consistent and very aggressive increase in the average price per square foot over several months beginning in March of this year. For Castro Valley real estate prices increase be approx. $90 per square foot in 1 month. One of the main reasons for the quick escalation in price was that there was an extremely low number of active homes on the market coupled with high demand. We saw most homes being bid up by virtue of multiple offers over asking price. While this was going on we had some challenges due to lack of comparable sales which caused appraisals to be below asking price. The demand was so great that buyers were waving the appraisal contingency and making up the difference between appraised value and offer price with cash. For Castro Valley real estate I expect to see prices remain relatively flat throughout the remainder of the year with moderate price increases through 2014.