If you’ve lived in our community for any length of time, you’ve undoubtedly had days when you’ve seen the headline news professing that it’s a “buyer’s” market, and then talked to a friend who is desperately trying to buy a home, but keeps losing out in multiple bids. The lesson here is that real estate markets are hyper-local. I’m not saying that our local market isn’t affected by the national market or macroeconomic factors – it is. However, the impact may be much smaller here, than it is in other locations.
It’s important to realize that the Bay Area has a long history of surpassing other real estate markets and often avoids the market lulls that are experienced in other areas. Multiple factors lead to this reality. Strong (high end) employment, strict limits on new development/construction and a very appealing location and climate are just some of the reasons that our market stays strong. Looking more locally at Danville, you can add the appeal of natural beauty, a dynamic downtown, excellent schools, low crime and a system of trails & parks that serve many different demographics.
Even within our local market, at times the market can be very different, depending on the property type, value and other factors. The market is always strongest where there is the most demand. In our local community, that most often translates to the most affordable single family homes, in good condition. Add in a great location (walkability, view, no negatives) and the demand is even stronger. The highest demand falls in this category because there are buyers coming from many different directions, looking for this type of home – first time buyers, investors, flippers, move-up buyers coming from a condo and those who wish to “right size” to a smaller home.
Sometimes, temporary issues affect the market in specific locations. Examples include challenges with obtaining homeowners insurance in areas that are considered to have very high fire risk, or a location that is near a proposed future development, such as a road, new neighborhood or a cell tower. From my experience, the fear of the unknown can have a huge temporary impact on the neighborhood, while the long term impact may be negligible, or even turn out to be a positive.
It’s also important to remember that often times, many sources of news prefer sensational headlines, to garner attention. This applies to both positive and negative news, and it can be the source of a lot of confusion. One of the most common sources of confusion that I see is news reports about “new home sales.” Most consumers hear this as “the real estate market,” but it is quite different. New home sales refers to the sale of new construction homes. Most often, the numbers correlate to how many homes were built and available for sale, in the first place. If the market is a hot seller’s market, but fewer new homes were built for sale this year, the headline will announce that “New home sales dropped dramatically!”
Are you curious about the local market? Every home is unique. Please feel free to reach out to me at 925-964-5010 or via email at Lisa.Hopkins@Compass.com for a custom analysis. Even if you’re not planning to move, I’m happy to help by providing you with relevant data, enabling you to make a well informed decision. It’s never too early to start planning for success.
