ByLeslie Brinkley 
Tuesday, June 13, 2023
Experts say that despite the Bay Area having the nation's 'fastest dropping real estate values' it's still not a buyer's market.
KGO
DANVILLE, Calif. (KGO) -- A national study of home prices recently declared that the Bay Area has the fastest dropping market values in the United States. But on the ground in the East Bay, home prices are actually on their way back up this summer.
"This is the summer of uncertainty. Uncertainty about interest rates, maybe uncertainty about homeowners insurance," said David Stark with the Bay East Association of Realtors.
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Realestateagents.com put the Bay Area at the top of their list for "fastest dropping real estate values" in the nation based on data from the National Association of Realtors with San Francisco, Oakland and Hayward snagging the top spot, and San Jose, Sunnyvale, Santa Clara region coming in second.
But that's a one-year snapshot from the start of 2022 to the start of 2023. Drilling into just the last few months shows something different happening.
"I wouldn't look at some of these price trends and say there's a fire sale for real estate in the San Francisco Bay Area. We've seen price appreciation in many communities in the East Bay in particular," said Stark.
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For example in Danville, the median detached single-family home sold for a whopping $2.4 million last summer. By January of this year, the median price dropped to $1.6 million. Now prices have bounced back up to over $2 million.
Fremont has also seen a big jump in median prices for single-family homes. Richmond is the only community according to the Bay East Association of Realtors where prices are still sliding.
Another twist, homeowners are tending to price their homes just at or a little below market value, leading to some properties now selling for "above" list price.
Any decrease or even sustained stabilization of interest rates could lead to this fall looking drastically different than this summer.
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As a seasoned real estate expert with a deep understanding of market dynamics, I can shed light on the nuances mentioned in the article by Leslie Brinkley about the Bay Area's real estate trends. My extensive experience in the field allows me to dissect the information and provide valuable insights.
The article touches upon the paradoxical situation in the Bay Area where, despite being declared as having the nation's 'fastest dropping real estate values,' it's not necessarily a buyer's market. The evidence provided by realestateagents.com, using data from the National Association of Realtors, highlights San Francisco, Oakland, and Hayward as the top areas with declining values, while San Jose, Sunnyvale, and Santa Clara follow closely.
However, my expertise prompts me to emphasize the importance of considering the timeframe presented in the study—specifically, a one-year snapshot from the start of 2022 to the start of 2023. To truly understand the market dynamics, one must drill into more recent data, as the article suggests.
David Stark from the Bay East Association of Realtors rightly mentions the summer of uncertainty, attributing it to factors such as interest rates and homeowners insurance. This uncertainty contributes to the complexity of the real estate landscape, making it imperative to analyze shorter timeframes for more accurate assessments.
The article delves into specific communities in the East Bay, such as Danville, where a significant rebound in home prices is observed. The median price dropped from $2.4 million to $1.6 million between last summer and January but has now surged back to over $2 million. Fremont also experienced a notable increase in median prices for single-family homes, further supporting the notion that the market is dynamic and not uniformly declining.
One intriguing observation is the unique pricing strategy adopted by homeowners, pricing their properties just at or slightly below market value. This tactic, as mentioned in the article, has led to some properties selling for "above" list price, indicating a level of competitiveness and demand in certain segments of the market.
In conclusion, the Bay Area's real estate market is multifaceted, with localized trends and short-term fluctuations that may defy overarching labels like "buyer's market" or "seller's market." The interplay of factors such as interest rates and homeowner behavior adds layers of complexity, making it crucial for both buyers and sellers to stay informed and adapt to the evolving landscape.
