Going into 2018, many of us wondered what real estate had in store for us. Were prices going to continue to increase? Was inventory finally going to catch up to demand? Were the 2018 tax changes going to change the way we look at the world? The short answer is we are seeing more of the same trends from 2017.
If you look at prices over many different areas in the East Bay from Pleasant Hill to Lafayette to Danville, we are noticing the home prices are still heading up. We are not seeing double digit growth amounts but healthy increases in the 5%-6% range most months and an even more impressing 7% increase in January. Where we notice dramatic increases is in the price per square feet. For instance in Danville, the price per square feet has gone from $425 in December 2016 to $495 in November 2017 to $507 in December 2017 and it is looking like last month will likely end up around $512-$513. This is almost a 17% increase in one year. People are paying more for less.
There is only one way to describe this. Inventory is really low and this hasn’t changed. In fact sales volume has dropped on average due to the lack of homes on the market. We are seeing completed sales be lower by 5% – 15% depending on what part of the East Bay we are talking about. People are seeing no incentive to move and those who do change houses are few and far between. Price pressures still exist and likely not much will change until mortgage rates get closer to 5.5%-6%
If you want to come to an area that is expanding and has great amenities, come to the East Bay. I’ll be glad to help answer your questions about the area. Contact the Wucher Team to get them answered and obtain assistance in finding the home of your dream.