Attention Home Owners: Bay Area Real Estate is SMOKING HOT!

Wednesday’s San Francisco Chronicle (Wed, Mar 26th) front page contained an article titled “Local Home Prices Soar 17.5%”. This was based on data that was gathered from January 2013 compared with the same period last year. Like with anything reported by the local news media, it’s usually several months old.

For those who live in the Contra Costa County, please take note. Here are the most up to date figures (average sale price) for 5 of our communities for the month of March (with still 3 days left) compared with March of 2012:

Lafayette/Orinda/Moraga (also called Lamorinda):
Number of Sales March 2012 – 61
Number of Sales March 2013 – 37
Average Sale Price March 2012 – $903,508
Average Sale Price March 2013 – $1,177,259
% Change from March 2012 – 26.5%

Danville:
Number of Sales March 2012 – 47
Number of Sales March 2013 – 32
Average Sale Price March 2012 – $828,646
Average Sale Price March 2013 – $1,046,246
% Change from March 2012 – 26.2%

Walnut Creek:
Number of Sales March 2012 – 34
Number of Sales March 2013 – 26
Average Sale Price March 2012 – $656,007
Average Sale Price March 2013 – $763,097
% Change from March 2012 – 16.3%

Pleasant Hill:
Number of Sales March 2012 – 67
Number of Sales March 2013 – 18
Average Sale Price March 2012 – $439,734
Average Sale Price March 2013 – $541,088
% Change from March 2012 – 23%

Concord:
Number of Sales March 2012 – 118
Number of Sales March 2013 – 62
Average Sale Price March 2012 – $317,183
Average Sale Price March 2013 – $373,722
% Change from March 2012 – 17.8%

In addition to receiving multiple offers, typically 5 to 10, but in some cases 20 to 30, sales prices are tens of thousands of dollars over asking. When I reviewed some of the significant sales in March (homes which sold in 10 days or less in the more affordable towns of Concord, Pleasant Hill and Walnut Creek), the average amounts OVER the asking price were:

Concord: $31,388
Pleasant Hill: $53,425
Walnut Creek: $41,755

Also, I’ve frequently heard of cash offers for homes priced under $400K over the last 12 months. However, I’m now hearing of cash offers as high as $600K to $700K in Contra Costa County. The obvious conclusion is that it’s a FABULOUS TIME to sell. However, I’m sure that there are a number of reluctant sellers because they want a new home “in-hand” before deciding to sell. In market with minimal inventories and competitive bidding, that’s a problem. And you can just forget about making Contingent Offers (contingent upon the sale/close of a house).

GOOD NEWS for these reluctant sellers. There’s a new Bridge Loan product that I just heard about yesterday from RPM Mortgage (a mortgage bank) that I’ll be discussing in my next blog. This Bridge Loan is VERY DIFFERENT than ones that I’ve seen in the past. It may enable many move-up or move-down Sellers to buy their new home before selling and closing on their current home. HELP IS ON THE WAY!

© Copyright 2018 Cary Amo..Your Lafayette Real Estate Pro | Powered by Stratosphere Marketing Solutions