Despite the ongoing health and economic crisis precipitated by COVID-19, the Diablo Valley real estate market continued its dramatic recovery from the steep declines in March and April. The demand for high-end homes, in particular, has been extremely strong – this applies to virtually every market in the Bay Area. More affluent buyers – the demographic least affected by COVID-19, unemployment, and also having the greatest financial resources – have been jumping back into the market to a greater degree than other segments.
Depending on the statistic, these analyses will sometimes include the 3 cities of Lamorinda, or look at full-county trends.
The first chart below illustrates the substantial rebound in buyer demand in Diablo Valley, as the number of listings accepting offers in June 2020 rose well above the level of last year.
Contra Costa County ranks very high in this classic statistic of supply and demand.
Sales activity in the higher price ranges has soared.
These next 3 charts review house values from different angles: Shorter and longer-term trends in median house sales prices, and quarterly changes in average dollar per square foot value.
Average dollar per square foot value trends can be affected by a number of factors besides changes in fair market value: increases in luxury home sales, especially on larger lot sizes, differences in the average home size of sales occurring in a specific period, new home construction, and other factors as well.
Across the Bay Area, condo markets have generally been softer than house markets. It may be that prospective condo buyers – often younger and less affluent than house owners – have been more affected by the huge jump in unemployment.
Home Prices and Price Trends by City or Community
in Diablo Valley & Lamorinda
Average days on market were very low in Q2 2020.
And mortgage interest rates fell to another historic low, adding fuel to buyer demand.