Spring is traditionally when people decide to sell their homes in Lafayette for a multitude of reasons. When the weather is beautiful and flowers are in bloom homes look their best. Buyers traditionally receive their end of the year bonus the first of the year, have the money for a down payment and are no longer distracted by the winter holidays. Not to mention families are looking forward to the next school year and are trying to move to Lafayette in time to enroll their children in our award winning schools before summer break. Springtime is when sellers historically do best.
So what has the spring market been like in Lafayette in 2016? According to statistics collected by Contra Costa Association of Realtors, as of April 30th, inventory is down 9.2%, the number of single-family pending & closed home sales are down 21% and the average sales price is up 6.3% to $1,586,903 compared to $1,419,886 in 2015. The low inventory has pushed prices to new heights in Lafayette. Prices are significantly higher than the previous high water mark of 2006 where the average sales price was $1,359,845. While Lafayette single-family inventory is definitely an issue townhome / condo listings have doubled and closed sales are up 150% thanks to new developments like the Woodbury.
If you are curious how Lafayette stacks up against Orinda and Moraga - I am too. A little friendly competition never hurts. For Orinda the average home price is $1,635,741, the number of listings are down 6.1% and closed transactions are also down 41.6%. Moraga inventory is actually up 14.7% from last year while the average home price is $1,281,815 up 2.35% over 2015.
As the spring market wraps up what is in store for this summer? There are definitely buyers who will be continuing to look through the summer months because they have not secured a home during the spring due to the short supply of single family homes. Despite the significant increase in the average sales price across the board in Lamorinda you can’t ignore that the number of closed transactions has slowed. Interest rates are holding near historical lows, but we will likely need further appreciation in Bay Area technology company valuations to push prices higher from here.
Please feel free to call or email me your real estate questions or for a free home evaluation. I can be reached at (925) 951-3817 or by email at email@example.com.