California real estate is leading the pack in a nationwide real estate boom that is gaining momentum and looks to continue throughout the year. According to a report from RealtyTrac, roughly 27% of all homes in the United States sold above market value. With states around the country seeing improvements in the market, some areas of the country are doing better than others, namely the Bay Area. Over performing markets like San Francisco and surrounding areas will yield high premiums for homeowners ready to sell.
Home Sales Prices Soar In The Bay Area
Four counties in California have robust housing markets that are experiencing higher yields on home sales. Those selling homes in San Francisco netted the most substantial net over market value in the nation. Sellers in the Bay Area walked away from sold homes with 108% over market value in revenue. Homes sold in the Contra Costa County, including Lafayette CA real estate, yielded about 107% over list price, on average. A good part of the price appreciation, according to the California Association of Realtors (CAR), is due to the inventory shortage being experienced in the Bay Area. This shortage in supply is positively impacting the value of existing homes. The number of available homes in the area, also known as the monthly supply of inventory (MSI), has been extremely low for San Francisco. Logically, the number of homes being sold very quickly and for a greater than the median value will impact the number of homes available to other buyers in the market and downstream pricing.
Lafayette CA Real Estate Prices Driven By Stagnant Inventory
The concept of supply and demand is an economic imbalance that self-corrects through increased housing cost. The inventory rate for San Francisco was 1.6 at last report, and Lafayette CA real estate was also in the same very low range at 2.4. Increases in sales price for homes around the country coupled with a shallow available inventory for sale have generally shifted the market imbalance in favor of sellers. Although ideal for sellers, the market imbalance has posed a challenge for those buying into the Lafayette CA real estate market. Fortunately, all markets exhibit ebbs and flows, and we have seen a recent surge in the inventory of Lafayette CA homes for sale that may just normalize the market. Additionally, we are moving toward the end of the summer when demand tends to diminish as families run out of time to get their children settled in new homes and start school. For many who have not yet found the right time to buy, it may be around the corner.
Buying In A Sellers’ Market
We always encourage our buyer clients to be well-educated about the various micro-markets within the overall Lafayette CA real estate market, and the relative price points of homes. We have found that having our clients carefully watch the market… seeing what homes get listed for, what they sell for, and how long they are on-market will help them make the right decisions when it comes time to make an offer. Buyers of homes for sale in Lafayette cannot be tentative when it comes time to make a purchase. It’s important to be informed, confident about value, and then present a strong, well-documented offer that will be positively perceived by the sellers.