After a several-year hiatus, it is wonderful to see local Buyers back in the Lamorinda real estate market. The surge in the real estate market was caused by a lack of housing supply, historically low interest rates, and our COVID-altered lifestyle where our homes became of utmost importance. This created a real estate environment with steep competition and bidding wars. Many Buyers lacked confidence in their ability to successfully find and win a new home. In addition, the skyrocketing prices meant a higher tax basis. As a result of these factors, they simply stayed put and pulled out of the real estate market.
Now that the market is calming, most prices are lower (we are down 23% in Lamorinda since Q1 2022 - see graph below) and interest rates have stabilized (and even lowered a tad). Buyers are gaining confidence in their ability to navigate the buying and selling process and are becoming excited at the possibility of finally making a local move depending upon their housing needs. In fact, most people’s needs are still very different than they were pre-COVID. Many Buyers are choosing to “marry the house and date the interest rate” as predictions for interest rates are mixed. The good news is, if you are a Buyer and Seller in this marketplace, selling a tad lower and buying a tad lower can be a win in terms of your tax basis. We have no idea how long this new market will last, but we love seeing local faces and past clients in our open houses!
Buyer stats from 21 Dana Green Team transactions in June, July and August 2022 (to-date):
- Move around Buyers (within Contra Costa County) 38.09%
- Moving to Lamorinda from a different County in the Greater Bay Area 28.57%
- Local rent to buy (already renting in Contra Costa County/all first-time Buyers) 14.28%
- Moving within California (outside the Greater Bay Area) 9.52%
- Moving to California 9.52%
If you are a Buyer or Seller and want to watch the market, we’d be happy to place you on a real estate search, so you too can begin to learn what the Lamorinda real estate landscape looks like. Reach out to us today if interested. And, happy house hunting to all our local Buyers who are now excited to buy!
Dana & Team