Q3 2024 East Bay Real Estate Market Watch
Q3 market watch,
Welcome to October! The month where we have multiple sports being played - baseball, football, basketball and hockey all at the same time! This edition of market watch we are looking at the 3rd quarter of 2024, which includes the months of July, August, and September. There are all these sports available to us right now, dividing our attention, and the housing market is acting in much the same way. Since there are more homes on the market, the buyer pool is thinned out. If we were a TV network we could say ratings are down, but does that mean total viewership, or the number of active buyers has changed? Or are the same number of people just spread out over the multitude of opportunities in the East Bay?
The summer slowdown definitely impacted this quarter’s numbers. Prices have dropped across the board compared to Q2 of this year. But year over year, average sale price and average list price have remained relatively flat. So are we on the precipice of a meltdown like the quarter over quarter numbers suggest? Or do we find ourselves in the normal eb and flow of the annual housing cycle?
The big concern we have is that contracts are not keeping up with new listings. In Oakland for example, there are twice as many listings as new contracts in the 3rd quarter and as a result average days on market is up to 34. Typically in our area, when days on market reaches 30 or more, it’s considered to be a buyer friendly market. Which has been holding true for us for homes under 1.5M. The most competitive market is 1.5M and up. Multiple offers, big jumps in sale price vs list price, and fewer days on market than average. And why do you think that is? If you said interest rates and the cost to borrow money you hit the nail on the head. Most folks searching for housing below 1.5M are using a mortgage, and interest rates are still elevated above 6%.
When rates come down we expect there to be more folks entering the market, but until then, it’s really in the buyers hands. We have multiple tools available to our clients for pricing homes so you don’t get caught over paying. Or having a home that sits on the market unnecessarily. If you have a question about a specific area or property, please reach out to us today!
Eli and Bill
Q3 over Q2 housing statistics for Alameda County, Contra Costa County, Oakland, Berkeley, Martinez, and Pleasant Hill
