(information courtesy of Pacific Union – pacunion.com)
A slowdown in real estate activity that began at the end of the second quarter continued through the third quarter in Pacific Union’s Contra Costa County region. The number of properties on the market pulled back from a year ago, perhaps because sellers were uncertain where they would find their next home, with virtually every Bay Area community reporting extremely limited inventory levels.
Contra Costa buyers were similarly cautious in the third quarter due to rapidly increasing prices, and the number of closed transactions declined. The drop-off resulted in fewer multiple offers and many more price reductions than we have seen in recent quarters, with most homes in the third quarter selling for slightly below their original list prices.
Looking Forward: We anticipate flat appreciation for the remainder of the year. Real estate activity will taper off as the holiday season approaches, and inventory will likely remain tight into 2015, as sellers wait for spring to put their homes on the market. With buyers also standing on the sidelines, homes will take longer to sell and should be priced conservatively to avoid price reductions.
Defining Contra Costa County: Our real estate markets in Contra Costa County include the cities of Alamo, Blackhawk, Danville, Diablo, Lafayette, 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.