Navigating the Current: Is Now a Favorable Time to Buy a Home?

Strong Buyer Demand Propels East Bay and South Bay Real Estate Markets

QUICK TAKE:

• East and South Bay areas are known for their proximity to job centers, good schools, and desirable amenities. These factors can make them attractive to both local and out-of-area buyers.
• Over the past few months, there has been a noticeable surge in new listings hitting the market in both the East Bay and South Bay regions. Sellers are capitalizing on the strong demand, leading to a healthy supply of available homes.
• When new listings and sold listings are both on the rise, it can indicate a balanced market. This means that there is a reasonable equilibrium between supply (new listings) and demand (sold listings), which can lead to stable home prices.
• Over the past few months, there has been a noticeable surge in new listings hitting the market in both the East Bay and South Bay regions. Sellers are capitalizing on the strong demand, leading to a healthy supply of available homes.

SUMMARY STATISTICS FOR EAST AND SOUTH BAY FOR AUGUST

STABILITY IN HIGH-VALUE COUNTIES: 

Counties like San Mateo, Marin, San Francisco, and Santa Clara continue to maintain high average sale prices in 2023, despite some minor fluctuations. This indicates stability in the high-end real estate market in the Bay Area. Several counties, including Orange, Santa Barbara, and Santa Cruz, have seen moderate increases in their average sale prices from 2022 to 2023. This suggests ongoing demand for homes in these regions. Los Angeles County and San Diego County, both in Southern California, have relatively stable average sale prices. Southern California remains an attractive and diverse real estate market. Alameda County and Monterey County have experienced a slight decline in average sale prices from 2022 to 2023, reflecting potential shifts in buyer preferences or affordability considerations in the Bay Area.

SINGLE - FAMILY HOMES PRICES BY COUNTY, AUGUST

Source: MLS

Several counties experienced a decrease in average sales prices from 2022 to 2023. Notable decreases were observed in Santa Barbara (-10%), Marin (-7%), San Francisco (-9%), and Alameda (-9%) counties. On the other hand, some counties saw price increases. Napa County, for instance, had a substantial increase of 10%. San Benito and Contra Costa counties also experienced modest increases. Counties like Orange, Los Angeles, San Luis Obispo, and Ventura had relatively stable prices with marginal increases or decreases. Various factors, including changes in supply and demand, economic conditions, and shifts in buyer preferences, can contribute to these price changes. Additionally, seasonal variations and external factors may influence price fluctuations.

SINGLE-FAMILY HOMES INVENTORY AND DAYS ON MARKET, AUGUST 

Source: MLS

• A months of inventory figure around 5.1 suggests a market that is balanced between supply and demand. This can mean that there is a reasonable inventory of homes available to buyers, and sellers are experiencing a decent level of demand.

• A median days to sell of 18 days indicates a relatively fast-paced market, where well-priced and desirable properties are likely to sell quickly. Buyers should be prepared to act swiftly in such a market to secure their desired properties.

SINGLE-FAMILY HOMES DOM BY COUNTY, AUGUST

Source: MLS 

• Counties with very low median days to sell (under 10 days) may experience intense competition among buyers, potentially leading to multiple offers and quick decision-making.

• Counties with moderately fast-paced markets (10-15 days) still indicate strong demand, but buyers may have a bit more time to consider their options.

 

CONDO AND TOWNHOUSE DOM BY COUNTY, AUGUST

Source: MLS 

• Santa Clara County has a very fast-paced real estate market with a median of only 9 days to sell. This indicates strong demand and a competitive environment for buyers.

• Contra Costa County also has a relatively fast-paced market, with a median of 12 days to sell. While not as rapid as Santa Clara, it still suggests a competitive environment.

• Alameda County has a moderately fast-paced real estate market, with a median of 14 days to sell. This indicates that properties typically sell within two weeks, but buyers may have a bit more time to make decisions compared to the faster-paced markets. 

• Fast-paced markets like Santa Clara County require buyers to be well-prepared, including having pre-approved financing, clear priorities, and the ability to act quickly when the right property becomes available.

• In moderately fast-paced markets like Alameda County, buyers still need to be prepared but may have a bit more time to explore their options.

• Sellers in these counties may enjoy a competitive advantage, but it's essential to price their properties competitively and effectively market them to attract buyers.

 

Real estate conditions can change over time, so staying updated with the latest market trends and conditions is crucial for making informed real estate decisions. Keep in mind that the real estate market can change over time, and conditions may shift from month to month. Staying informed about market trends and working with a knowledgeable real estate professional can help both buyers and sellers navigate the market effectively.

 

STAY INFORMED WITH MILESTONE REALTY!