2019 East Bay Housing Market
The California economy has remained strong for another year. The job market is great, and the construction market has added the highest number of jobs nationally between January of 2018 and 2019. However, a weakness in the housing market shows cooling in the forecast.
According to UCLA, “The housing markets are softening in California, and it’s not just the tony neighborhoods of San Francisco, Silicon Valley, and West LA.” They go on to say that it is a statewide phenomenon. According to CoreLogic, home sales fell to an 11 year low in January this year.
Has the Bubble Popped?
Each year the California Association of Realtors tracks the housing prices and sales for nine county sections in the Bay Area. In June of 2017, the San Francisco Bay Area had a median home price of $950,000. Going forward, in June of 2018, the median housing price was $1.050,000.
However, prices have fallen instead of climbed further. Homes in June of 2019 were worth an average of $950,000 again making a loss of 8.1% in a one year period. Also, home sales of condos fell by 16% for the same period. With June being the historical Summer peak for sales, it appears if sellers are running out of willing and able buyers.
What About East Bay Specifically?
Most of the California Association of Realtors focus was on a nine-county region. However, data about East Bay, or Alameda County, Oakland, and Berkeley show a similar pattern. In June of 2019, housing prices dropped 5.4% from June of 2018 with a 6.3% drop from May of 2018 peak.
Is There a Danger?
I don’t think so. Many seeing this data might wonder if we are on the brink of a housing bust. While the market has cooled significantly, there is no reason to think that a total collapse is coming now or in the near future. Rather, data suggests that the seller’s market is slowly becoming a buyers market. Jeff Barnett, regional manager of Alain Pinel in Los Gatos, told Mercury News that this trend is healthy and the market is heading back to normal.
What Does That Mean for You?
Economist Jordan Levine was quoted as saying that many buyers will remain priced out of the market; however, demand will not disappear. Also, evidence has shown that we might be going into a buyers market. If you are looking to buy a home in the East Bay area either this year or next, then data shows you are looking at the right time. However, if you are looking to sell, then you should think about selling sooner rather than later.
