The 2023 third quarter numbers are in for detached homes in Central Contra Costa County. It proves to be a very interesting market space that defies some previously presumed conventions. Let’s review the recent history to better understand our current situation. During the pandemic, demand for homes skyrocketed. We were spending more time in our homes and the right space became even more coveted, especially in suburban areas. Also money was infused into the economy, while personal discretionary funds were redirected from travel to home buying budgets. All this demand drove up home prices and number of transactions.

Then last year we more fully entered the post pandemic era, money infusion ended, and interest rates started climbing all while inflation took funds previously available for housing to food, gas, and other consumer necessities. This decreased demand at the same time we saw supply go down. Sellers assumed their homes were losing value and decided to wait out the market.  

That brings us to 2023, where we have seen year-to-date the number of home sales down as much as 40% from two years ago. While list prices have continued to increase, the actual sales price declined ~3% in Central Contra Costa. The supply and demand both shrank about the same rate.  

But the third quarter surprised us. It was the first quarter since Q1 2022 that we saw an increase of homes for sale. Buyers, having adjusted their budgets and having more confidence in their personal finances, re-entered the housing market once again raising demand. Sellers are responding to this increased demand and more have decided now is the right time to sell.  

We are still seeing multiple offers on homes that are well prepared and move-in ready. Homes with incurable defects like location, traffic, and schools are sitting on the market a little while longer. Anecdotally, three of our last four listings sold with multiple offers and for significantly over the list price, although that is not true for all homes. 

 If you are curious what your home is worth or want to discuss anything real estate related, please reach out to us. As usual, we are grateful for referrals of family, friends, and colleagues.