2019 was supposed to be the year of the IPO. Some major Bay Area corporations like Uber, Lyft, etc. were issue IPOs and the common thinking was this was going to lead to a high amount of cash in the marketplace. While much of this cash flow was going to hit San Francisco and Silicon Valley but it was expected to flow to the East Bay like Contra Costa. Despite the IPOs not bringing the expected returns, 2019 has been another great year for the real estate market in the East Bay.
When we say this has been a solid real estate year is not because the market has shown double digit growth. In fact, having continuous increases at that level could lead to a bubble market. The reality is that we’ve reached a stable year where Contra Costa County has grown about 3.7% from an average sales price of $657,000 in October 2018 to $681,250. At the same time, sales year over year have gone up 10.7%. These figures actually run counter to some other parts of the Bay Area. Overall, the San Francisco Bay Area has seen a slight dip in prices of about 2%. Contra Costa’s success is a direct result of the strong community living in areas like Pleasant Hill, Martinez, Lafayette, and Walnut Creek.
An interesting statistics in all of this is that the average mortgage payment has actually been going down even while the average sales price has risen. This is due to the continued and relatively low mortgage rates. Many individuals are refinancing and new homes are getting much lower interest rates.
While there are no guarantees to where rates and real estate prices are going to head over the remainder of the year, there appear to be no signs that either trend will substantially change. Thus, it is a good time to buy a home in cities like Pleasant Hill, Martinez, or Walnut Creek. Should you need help or have questions, contact the top realtor in these areas, Laura Wucher at 925.595.8047.