The Market Snapshot
So this month, let's go to altitude and take a look at the world from 30,000 feet rather than just focusing entirely on our local Market. So let's soar above the fray and look at overall Alameda County to show how widespread the market trends really are!
Alameda County Overview
- Median Price in Alameda County:
- February 2020 was $945,000
- February 2021 is $1,100,000
- That is an increase of 16.4% over February last year.
- Price per Square Foot is up 14.5%.
- Sales activity Year over Year is up 32.6%.
- Overall Inventory is down from 2020.
- Here is an interesting statistic; in February of 2021, there were more licensed Realtors nationwide then the number of homes listed for sale!
- We are looking at some of the lowest inventory levels since 1982.
Local Market Analysis
Year to Date Unit Volume Sold is on the rise
Our entire market is up 17% in Unit Volume Sold Year to Date over last year to date.
The Volume of new listings coming to market is also on the rise
Active Inventory is up 21% Year to Date over last year to date.
While this is supporting the increase in unit volume sales, inventory is far below current demand, with most properties seeing double-digit multiple offers with offers significantly over the asking price.
The Median Price is UP and moving quickly
Our entire market is up 10% in Average Price and 24% in Median Price Year to Date over last year to date.
The rapid rate of appreciation is likely to start causing issues with appraisals.
Market Outlook
Where we are right now is on the verge of a strongly rebounding market for a myriad of reasons:
- There is clear enthusiasm that vaccinations will result in the continued reopening of the economy and a return to normalcy.
- The prospect of a faster economic recovery is putting some upward pressure on interest rates. Upward moves in interest rates traditionally accelerate Buyer enthusiasm for writing offers before rates go too high. So long as interest rates do not move up quickly, Buyer motivation will remain high and buying power will remain steady.
- The pandemic has clearly illustrated the importance of home and the need for more indoor space as well as private outdoor space.
This is a market that is moving very quickly and fueled by strong Buyer demand due to several factors. Next month we will not only update you on the market but also address the elephant in the room; what may be the future of available inventory in our market.
Until next month, stay safe and healthy.
