The fall can be a precarious time for East Bay real estate, and 2021 is no exception. After a relatively calm summer, we are seeing new listings flood the market within a very short period, which means buyers have more to choose from and sellers have more competition.

 

Now that we’re a few weeks past Labor Day, we thought it would be a good time to check in and see where things stand.

 

In typical seasonal fashion, buyers and sellers took post-vaccine/pre-Delta summer vacations. This decreased the number of listings, and thus the number of transactions.

 

 

The market reached a crescendo in the first half of the year with prices reaching an all time high in April, up 22% over the previous year. Through the summer, open houses were busy. However, the overall pace of the market slowed with prices reducing slightly; by August they were still 15% higher than the previous year.

 

 

Similarly, homes continued to sell significantly over asking, reaching an all-time high in May at 21.1%.

 

 

By the time we reached the Fourth of July weekend, the market started to move out of its fast pandemic pace and adjust according to typical summer behavior. It has continued to move in this fashion, even now that we’re in the throes of the post-Labor Day rush.

 

The number of new listings doubled between 9/6 and 9/13, and it dropped as of 9/20. This activity is typical for this time of year.

 

 

All of these new listings means buyers have more to choose from. They’re more likely to take time attending more open houses and more carefully selecting which property they want to write an offer on. As a result, the number of new contracts fell immediately after Labor Day, then increased slightly (although not at the same levels we’ve seen in previous years).

 

 

This metric can vary week-to-week, so it’s quite possible that new contracts may spike as buyers absorb new inventory. That said, there are fewer listings on the market now than in the previous two years, and the number of properties under contract is close to 2019 levels.

 

The market continues to ebb and flow, so it is too early to determine exactly where we will land. For now, the market is moving at a healthy pace and supply and demand remain in balance. However, sellers should watch for continued high levels of competition, which may reduce their open house traffic and number of offers.

 

Speak with your agent about keeping activity high, which may include price reductions. Reach out with your questions and thoughts and let us know if Red Oak can be of service to you.