Obviously the Bay Area Real Estate market has been very hot and we’ve seen some massive appreciation in the last two years or so since the 2012 summer.
The question is will the appreciation continue or are buyers better off waiting for the Bay Area Real Estate priced to drop. If you are looking to buy in Pleasant Hill, Martinez, Walnut Creek or anywhere in the East Bay… This may provide some insights on the direction of the over all market place.
MEDIAN PRICES FALL IN 13 OF THE LARGEST 26 CALIFORNIA COUNTIES
California single-family home and condominium sales gained 3.9 percent in July 2014 but were down 9.2 percent from July 2013. Year-to-date sales for the first seven months of the year are the lowest since 2008.
The overall decline in sales is due to several factors: the decline in affordability due to rapid price increases, the rise in mortgage interest rates, lack of affordable inventory, and the rapid decline in distressed property sales. Whereas in July 2013 25.6 percent of sales were distressed properties, in July 2014 distressed property sales comprised only 17.0 percent of the total.
“Lackluster sales volumes so far this year should come as no surprise given the fact that in many California counties houses have simply become unaffordable,” said Madeline Schnapp, Director of Economic Research for PropertyRadar. “The decline in affordability in concert with the rapid decline in lower priced distressed properties for sale has exacted a toll on demand.”
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