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East Bay Story (cont.)

Quick Take:

Rising Demand still Outpaces Rising Supply

Every year, by at least March, we expect to see inventory rise after a high number of new listings come to market, which easily accommodate the increase in sales we also tend to see in the first half of the year.. Inventory in the East Bay, thankfully, increased in February and March, unlike the inventory in many other major markets, which is continuing to decline. Typically, inventory grows in the first half of the year, peaking in June or July. The East Bay has enough demand that many more homes could come to market before the market would balance between buyers and sellers. Currently, sales are still below last year’s level, but we expect sales to climb higher in the second quarter with more homes coming to market. As demand increases, competition among buyers and housing prices will climb with it. Single-family-home prices in the East Bay are still nearly 20% lower than their all-time highs in Alameda and Contra Costa, but condo prices are only slightly off peak. If active listings unexpectedly plateau or drop in the second quarter, we could easily see single-family-home prices rise significantly, and condo prices potentially reach new record highs in the summer.

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