Coronavirus hit the California housing market hard in May with single-family home sales down 13.9 percent from April reaching 238,740, the lowest level since the Great Recession. However, in a sign of things to come, pending home sales in May rose 57 percent. Historically low mortgage rates, low inventory, and buyer demand are key factors here. And buyer demand is fueled to some extent by what termed “urban flight”. During the months of lockdown, many city dwellers came to appreciate the value of more liveable space and a yard. Add to this the fact that while many were forced to work from home over the past three months, now some undoubtedly will opt to do that, making a move to the surburbs feasible.
In Contra Costa County, the median sales price in May was $690,00, down 1.5 percent from last May while sales were off an amazing 52.6 percent from May 2019. Here in Lafayette there currently are 39 homes on the market wth an average list price of $2,305,010. Comparatively, there are 12 active listings in Moraga with an average price of $1,645,000, and 45 in Orinda averaging $2,714,685. And In Lafayette, 72 homes have closed escrow through May with an average sales price of $1,822,933, which is slightly higher than the average sold price in 2019.
“The housing market continues to experience the release of unrealized pent-up demand from earlier this psring as well as a gradual improvement in consumer confidence,” noted Joel Kan, Mortgage Bankers Association economist. From all indications, look for demand to grow stronger over the next month or two. f you have any questions or would like additional information, please send me a note….jf@joannefishman.com.