Contra Costa County: Q2 Results
After many months of frustratingly low inventory levels, Pacific Union’s Contra Costa County region saw a significant increase in the supply of available homes for sale in the second quarter. Having regained equity in their homes, sellers made the decision to move during the quarter, some in order to be in their next homes before their children start school in the fall.
Home prices rose by double digits from a year ago, and properties generally sold slightly above their list prices. That’s good news for sellers, but it pushed some first-time buyers out of the market. Being outbid time and again in multiple-offer situations also discouraged some buyers, although the increase in inventory has tempered the frenetic pace of bidding we saw in 2013. In the second quarter, many homes attracted a handful of offers – not the dozen or more that were commonplace last year.
Looking Forward: Real estate activity typically slows during the summer, and the third quarter of 2014 will be no different. Home prices will continue to rise moderately through the end of the year, and a steady increase in inventory will reduce the instances of multiple offers, though the most desirable homes will continue to spark bidding wars.
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.
Months’ Supply of Inventory
The months’ supply of inventory is a measure of how quickly the current supply of homes would be sold at the current sales rate, assuming no more homes came on the market. In general, an MSI below 4 is considered a seller’s market; between 4 and 6 is a balanced market; and above 6 is a buyer’s market.
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.