As we approach the holiday season, we watch the market and ask ourselves: Could Dublin Ranch homes be cooling off?
It began with an intense summer performance where Dublin homebuyers bridged a $100,000 gap between asking and closing prices and drove the average home value to nearly $970,000. Calling the record-high figures “impressive” was something of an understatement. They were phenomenal.
Yet every summer is accompanied by a fall and a winter (even if the thermometer disagrees), and these cooler seasons often represent a slowdown in real estate. So is that where the Dublin market could be headed?
A few indicators support this possibility. First, while last month’s median closing price was just shy of $900,000 (and $50,000 higher than August), these numbers are decidedly less impressive when compared to previous months. Specifically, between April and May the average was $945,000 and, as previously mentioned, peaked at a whopping $970,000 in July.
The differences between list and sale prices have shifted, as well. Whereas bidding wars pushed the average closing price an incredible $100,000 beyond the median asking price in July, the trend has all but vanished in recent months. Most recently, the two figures were virtually identical—evidence of fewer bidding wars and less “heat” in the market.
And while the total number of homes for sale has shrunk, the “months supply of inventory” — a measure that examines both the number of homes and the time they take to sell — has actually increased for the second month in a row. A likely explanation is that the average Dublin home took longer to sell in September than in any month going back to January: 23 days versus February-to-August’s average of 14.5. While that’s still a relatively short period of time, it certainly suggests a slowdown.
For homeowners who might immediately interpret this as “doom and gloom”, not so fast: Economists at UCLA continue to forecast an extremely low unemployment rate that would strain available housing and elevate home prices. But the California Association of Realtors president Chris Kutzkey tempered these predictions by saying that “[in the Bay Area] growth could be limited by stiff market competition and diminishing housing affordability” and that “financial market volatility and the anticipation of higher interest rates are some of the challenges that may have an adverse impact on the market’s momentum next year.”
While the outlook is positive, the predictions still show a noticeable slowdown in the rate at which home values will climb.
(Source: C.A.R. 2016 California Housing Market Forecast)
Good news for homeowners interested in selling soon; not so good for those who are waiting in the hopes of seeing significantly higher prices in the next year. For these reasons — especially with talk of continued inventory shortages — it might very well be the perfect time to list your home. So if you’ve been sitting on the fence about whether or not to sell, don’t wait a moment longer! Contact Lifestyle Real Estate Services today. We’ll help you take advantage of record-low inventory and get you the price you deserve!