Home prices rose by double digits since the first of the year in all areas of Pacific Union’s Contra Costa County region, but buyers weren’t deterred in the second quarter. With mortgage rates still hovering near record lows, buyers jockeyed with each other at every price point, submitting multiple offers on virtually all properties.
Most homes sold at their asking price or higher, particularly those in the range of $800,000 to $2 million. By the end of the quarter, prices in most markets had risen within 20 percent of their 2007 peaks, and homes in some areas moved beyond to set new record highs.
Inventory remained constrained throughout the region but showed signs of improvement. Homes selling for $800,000 to $1.5 million were the most active price point in the region.
Looking Forward: We expect home prices to continue creeping higher and the supply of homes to continue expanding. Talk of gradually rising interest rates could scare some buyers out of the market, allowing the number of multiple offers to dip slightly. However, it could also prompt buyers to lock in lower interest rates now and save money on monthly home payments, even after paying premium prices in a bidding war.
Defining Contra Costa County: Our real estate markets in Contra Costa County include the cities of Alamo, Blackhawk, Concord, Danville, Diablo, Lafayette, Martinez, Moraga, Orinda, Pleasant Hill, San Ramon, and Walnut Creek. Sales data in the charts below includes single-family homes in these communities.
Median Sales Price
The median sales price represents the midpoint in the range of all prices paid. It indicates that half the prices paid were higher than this number, and half were lower. It is not the same measure as “average” sales price.
Average Days on the Market
Average days on the market is a measure that indicates the pace of sales activity. It tracks, on average, the number of days a listing is active until it reaches “pending” status, meaning all contingencies have been removed and both parties are just waiting to close.
Percentage of Properties Under Contract
Percentage of properties under contract is a forward-looking indicator of sales activity. It tracks expected home sales before the paperwork is completed and the sale actually closes.
Sales Price as a Percentage of Original Price
Measuring the sales price as a percentage of the final list price, which may include price reductions from the original list price, determines the success of a seller in receiving the hoped-for sales amount. It also indicates the level of sales activity in a region.