Wondering why it was so hot in Dublin, California recently? Instead of looking up at the sky, you might want to check out the neighborhoods. May was a sizzling month for home sellers and helped set an unambiguous tone for what to expect in local real estate this summer.
Last month, the median sales price amongst Dublin homes, townhouses, and condos climbed to the highest point in recent years: $797,450, which is a 15-percent year-over-year increase from 2014 and an even more impressive 34-percent jump from 2013.
How does this measure up to greater real estate market, though? A recent report by RealtyTrac shows that in 59-percent of U.S. housing markets, buyers are currently purchasing homes at prices below market value. For Californians who are in the middle of an intense housing boom, it probably comes as a surprise that over half of the country is still on the opposite end of the spectrum.
In fact, the average home sells above market value in only a quarter of U.S. markets. And if you were to guess which of those areas belonged to the “Top 10” with regards to selling over market value, you’d probably be able to pick out some of more obvious ones. For example, there’s the counties of San Francisco (ranked 2nd) and Marin (ranked 6th), the District of Columbia (ranked 3rd)—even Yolo County, which is benefitting from a significant influx of buyers pushing east in search of more affordable real estate (ranked 5th).
But at the top of the list, inching out San Francisco for 1st place? Alameda County.
In other words, while most of the country is closing below market value, the Bay Area is leading the way in selling above…and it turns out that Alameda County is the best example of this trend, nationwide.
Let’s go back to that previous figure, then: Last month, Dublin’s median sale price was just shy of $800,000. Compare that to the median sale price for all of Alameda County, $680,000, and it becomes clear that Dublin is currently one of the most buoyant cities in a county which is, itself, outperforming most of the nation. For anybody thinking about selling this summer, this is fantastic news.
Beyond this, Dublin’s housing market showed impressive figures in other areas last month. The median home sold for $28,450 more than asking price, which is indicative of high demand and room for a potential price increase. The typical property also spent a mere 14 days on the market before closing (the county average is 17 and the Bay Area is closer to 20). Lastly, inventory dropped back down to 0.8 “months”, reflecting the “strong seller’s market” that has come to define real estate in the region.
Will the market continue to favor sellers? Most signs say “yes”. However, with summer being the busiest time of year for real estate, it’s important that you choose carefully when hiring a company that can best market your home (and maximize your hard-earned equity) when competition is highest. Contact Lifestyle Real Estate Services for a free analysis to determine the value of your home today!