This has been a topsy-turvy year for the Inner East Bay real estate market. Higher interest rates, presidential elections and instability in the tech industry have competed against higher inventory and pent-up demand. This has made 2024 activity somewhat inconsistent with previous years, and thus hard to project.

 

What we do know is that the number of available properties is at its highest level since Red Oak started tracking in 2012, yet the number of properties under contract is at its near lowest level (slightly better than the all-time low, which was last year). This leads us to a high supply/low demand dynamic, which puts downward pressure on prices and other key metrics.

 

We are seeing this broadly across the Inner East Bay. For example, the number of sales fell 14% between May and June (maybe because everyone and their neighbor were traveling?). Also surprising is the fact that median price fell 8% to $995,000 during the same timeframe (prices are still well above all years 2020 and prior).

 

But these trends are not bearing out when focusing on specific cities and neighborhoods. For example, the price of a 3BD single-family home that's 1,000-2,000 square feet increased 7% in Montclair, North Berkeley and El Cerrito (Q1-Q2, 2024 vs. 2023). And prices in Lower Rockridge increased 19%, while prices in Temescal increased 23%. This reveals the properties in certain areas that are priced and marketed well continue to attract significant competition.

 

What's more, over the past 10 years, Inner East Bay cities have seen significant appreciation, from 38% in Piedmont to 120% in Hayward.