Lafayette CA Real Estate Market and Bay Area Predictions:
As the third post in this series that looks at the market and its underlying strength, let’s introduce a couple more compelling data points that support much deeper market strength, and then also look at the implications for buyers and sellers of homes for sale in Lafayette CA and the surrounding areas.
Two extremely well-respected real estate research companies, Corelogic and John Burns Consulting are predicting significant price appreciation ahead. Corelogic has taken a broad look at the Bay Area and is predicting price appreciation of 5-6% for the period of 2014 to 2015. John Burns Consulting is taking a longer term view and sees the San Francisco market up about 19% from present levels to December of 2017, but sees even a stronger move up in the east bay’s Oakland market – predicted to rise 24% during the same time frame. Given the fact that Lafayette CA real estate is still undervalued relative to equivalent areas in Marin or the Peninsula, I envision the upward pressure on prices to drive our real estate values at a rate that is at least the equivalent of what we are seeing in SF.
Implications — Lafayette CA Real Estate and the Surrounding Bay Area Communities:
1. Our market will maintain intense velocity and remain a “Seller’s Market” for the foreseeable future.
2. We are still 10-15% off of peak pricing in 2006 — there is plenty of room for prices to rise.
3. The eventual and inevitable rise in interest rates will affect Sellers more than Buyers since prices will adjust for overall home affordability.
4. Buyers of Lafayette real estate or in other local communities can choose to “set” the comparable sales for tomorrow by purchasing today, or sit and react to them in the months or years ahead.