Pleasant Hill real estate trends have shifted over the last few months.
These changes in cooling off are primarily due to mortgage interest rates continuing to rise and an influx of sellers trying to chase the prices from earlier in 2018.
In our last blog post, we illustrated how a key treasury note has spiked through a five-year resistance level, indicating the trend of rising rates will likely continue.
Bay Area Home Sales Were the Slowest for August in Seven Years as Activity Drops 10 Percent Year Over Year; Median Sale Price Declines Month to Month Again but was still Up 12 Percent Year Over Year New data released today by CoreLogic shows a total of 7,659 new and existing houses and condominiums were sold in Alameda, Contra Costa, Marin, Napa, Santa Clara, San Francisco, San Mateo, Solano and Sonoma counties in August 2018.
This number is up 1.8 percent month over month from 7,524 sales in July 2018,* and down 9.9 percent year over year from 8,504 sales in August 2017.
Year Over Year Change in Bay Area Real Estate Sales
Note that Contra Costa County sales are down 12.6% from the same month last year...
Could this be a big red flag on a shift in the marketplace?
How Will New Real Estate Trends Affect Pleasant Hill Real Estate
While this newer trend is ultimately good news for frustrated buyers, years of steadily increasing prices mean that those hoping to buy a home will need to spend a more significant share of their income once they find one unless we see prices decrease.
At the same time, raised Mortgage interest rates will be increasing payments as they continue to go up.
Will Bay Area income continue to keep up with the home prices?
Nonetheless, those buyers daunted by low inventory and high prices have reason to be cautiously optimistic as parts of the housing market begin to ease.
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