Home prices in the Lafayette CA Real Estate Market have been on a steady climb for several consecutive quarters. The demand for housing in the Bay Area has been the subject of many articles and real estate examinations. Some analysts continue to watch the market because they fear the rapid growth and high prices are signs of unsustainable growth. Many realtors are of the opinion that the climb in pricing and demand are the result of excellent employment opportunities and low housing inventory. Regardless of which theory proves true, there is agreement that current market conditions favor sellers.
The Lafayette CA Real Estate Market Has a Housing Shortage
Like the majority of the cities and municipalities in the Bay Area, there is a housing shortage in Lafayette CA. The housing shortage has been a heavily covered topic among real estate professionals in the areas. The shortage is such a challenge that the subject has moved to mainstream news. As newcomers relocate to the area, limited housing has proved to be a severe problem. Homes in the Lafayette CA Real Estate market spend very few days on the market because the number of homes is outnumbered by the number of people wanting to purchase a home. The housing shortage is not improving. Available housing is typically a combination of both new home builds and existing homes. There is a scarcity of available land for new construction in the Lafayette CA Real Estate Market, and the number of housing starts in the overall Bay Area has not reached the necessary level to keep up with population growth.
Lafayette Has A Shortage of Middle Range Sellers
Climbing home values in the Bay Area have left some financially fluid buyers reluctant to make the move out of their current housing situation. These potential sellers fear that the shortage of homes could result in them moving out of their home and finding a buyer, but not finding a new home. The lack of suitable replacement properties for middle ranged homeowners seeking an upgrade effectively serves to keep their middle range homes off the market. Additionally, as mentioned earlier, the tax implications of selling a home that may have doubled or tripled in value is a potentially hefty tax bill. Most of these homeowners have likely been in their homes for 10 to 20 years. Much has changed since their last venture into the real estate market, so there is the fear of the unknown. As Lafayette CA real estate agents, this is certainly an area where we spend a lot of time counseling our clients who are contemplating selling their homes.