THE ALAMEDA MARKET T
he City of Alameda is an amazing place to live, as anyone here can tell you. All you have to do is look at income and employment statistics, and you’ll understand why things look so bright in this little corner of coastal California. The real estate market is stable. It is actually a prime time to sell because the number of available homes dropped substantially between June and July. A lower volume of homes means you can ask for more, which is why properties are typically being sold for tens of thousands over the list price. Plus, there is great news nationally: the Federal Reserve is expected to cut interest rates for the first time in a decade, bringing many more buyers out to take advantage of ideal mortgage rates. The average income of an Alameda resident is well over the US average. In fact, at $42,331, it is 48.2% higher than the national average of $28,555. There is a major gap in median household income between Alameda and the nation as well. At $76,439, Alameda’s figure is 42.9% higher than the national median of $53,482. Year-over-year, there has been a 1.4% rise in the job market. Furthermore, the forecast is sunny, with the area expected to grow at 36.6%, set to outpace the expected US job market expansion of 33.5%. It is a seller’s market right now in Alameda simply because there are so few homes in inventory. The median list price is stable, dropping slightly, 1.5%, year-over-year. However, since the inventory is so tight now and since Zillow predicts a 0.7% decline in value over the coming year, now is
ALAMEDA
J U LY 2 0 1 9
M A R K E T U P D AT E
C A L I F O R N I A
H O MES SO L D
53
SINGLE FAMILY HOMES
38 CONDOS & TOWNHOMES
15
TOTAL
INVENTORY a great time to enter the market. Also consider that the value of homes does not match what people are paying. While the median list price of homes is $948,975 and there is a median value of $968,800, the median sale price is at $974,600. What’s most compelling right now, though, is that the last month has seen a 14% drop in the inventory, from 47 to 40 homes available. Now is the time to stand out
AVER A G E SAL E PR I C E S
AVERAGE DAYS ON THE MARKET
16
$1,057,741 SINGLE FAMILY HOMES
SINGLE FAMILY HOMES
$1,196,784
15
CONDOS & TOWNHOMES
CONDOS & TOWNHOMES
$705,500 NEW LISTINGS
29
17
ACTIVE LISTINGS
43
from the crowd. Furthermore, news that the Federal Reserve will potentially lower the interest rate has the real estate market abuzz. Certainly these moves by the Federal Reserve get attention and hugely impact markets. When Fed Chairman Jerome Powell spoke before the Senate Banking Committee and House Financial Services Committee, he stoked expectations that a rate
PENDING SALES
62
decrease was in the works. Following his statements, on July 11th, the Dow and S & P ended at record highs. Given the steadily improving job market in Alameda, now is a great time to move. Add to that the expectations that home prices in Alameda could lower slightly over the coming year, the current shortage of homes in inventory, and the Fed rate cut, and you have a recipe for a seller’s market. n
