Home Values Dipped in 925 Area Last Month: Reasons Explored.
Housing market shifts hit the 925 area hard last month, as changing conditions swayed both sellers and buyers. Here's the lowdown on how things are looking:
September saw a minor hangover for homeowners, with median prices dropping 1% compared to 2023's same month, totaling $425,000, revealed by Realtor.com's latest housing trends report.
### What's contributing to the drop?
- Bigger listings: There's been a 34% increase in active listings compared to the previous year, marking an 11th consecutive month of growth. However, inventory levels continue to fall short of pre-pandemic norms, sitting at 23.2% below 2017-2019 averages.
- Heightened listing activity: New listings soared by 11.6% year-over-year, reaching a three-year high. This steep rise followed a big drop in mortgage rates and the Federal Reserve's 50 basis points interest rate cut.
- Languishing sales: Homes are now hanging around for longer, with an average 55-day market time. This snail's pace is a seven-day increase from last year, and the slowest market speed for September since 2019.
Regional analysis
In the western U.S., including California, active inventory boomed by 36.5%, and newly listed homes jumped 13.4% year-over-year. Nevertheless, median list prices took a hit, slipping by 0.2%, reflecting a throttling market.
Smaller, more affordable abodes are grabbing a larger slice of the pie, contributing to a 2.3% rise in price per square foot, despite overall price softening.
The lock-in effect
Many homeowners are scared to jump ship, as 85% of mortgages nationally have rates below 6%, and 56% are locked in below 4%. A slight loosening of this constraint was observed with September's lower mortgage rates, tempting more sellers to list.
So what's next for the 925?
The balancing act between rising inventory and tepid demand suggests a gradual market adjustment. Sellers will probably need to price competitively to hook buyers, while buyers could reap the benefits of escalating options and softening prices.
Locals of the 925 area should keep an eye on evolving mortgage rates and inventory trends in the coming months. These factors will likely dictate home values' trajectory moving forward.
Want to stay ahead of the curve? Subscribe to our free 925 News newsletter, and we'll help you stay in the loop with all things happening in Walnut Creek, Lamorinda, Danville, Concord, and the Tri-Valley.
Sign Up for 925 News Today
From exciting events and new restaurant openings to local breaking news, small business spotlights, and crime reports, 925 News keeps you connected with what's happening in your neighborhood.
Stay informed with our comprehensive and free newsletter, made possible by our BFF :handhigh:, Kit.
P.S.
If you're curious about the broader outlook for housing in the San Francisco Bay Area, check out our enrichment data to learn more about predicted trends for the short-term and yearly forecasts.
- The drop in median housing prices in the 925 area, as revealed by Realtor.com, could be due to the increase in real estate listings and languishing sales, making it more competitive for sellers to attract buyers and potentially benefiting buyers with more options and softer prices.
- As the housing market in the 925 area seems to be adjusting gradually, with a balance between rising inventory and tepid demand, investors might find opportunities in this situation, especially considering that smaller, more affordable properties are witnessing a rise in price per square foot despite overall price softening.
