Monthly Market Minute
State of the East Bay Real Estate Market
Looking at the East Bay real estate market for March, we are seeing some interesting statistics. When comparing March 2018 to March 2019, we see the following:
- Inventory - up a whopping 42%, although still a sellers market
- Sales - flat to 3% depending on city
- Days on Market (DOM) - increasing from an average of 27 days to 34 days
- Prices - increases of 15-20% for a year ago
So what does this all mean? We normally see the market take off in February from the end of year holiday slumber. For this year, that did not occur until March. Normally, a 42% increase in inventory would signal the beginning of some relief buyers although we have not seen this as evidenced by the relatively flat sales. This was in spite of the fact that mortgage interest rates were low and in some cases even saw declines. Clearly affordability is not improving with prices increasing as much as 20% over 2018. Taken a whole, the data continues to indicate a shift is starting with increasing inventory, longer Days on Market (DOM) and relatively flat sales. However, the shift is being tempered by continued high prices and the corresponding lack of affordability, especially for buyers of homes $1M and under. At some point, as both inventory and DOM continue to increase, there will be downward pressure on home prices.