Richmond Waterfront Reaches Its Peak.
Early last month, we wrote about the housing market in the Richmond Waterfront (which consists of several communities, including Point Richmond, Marina Bay, and Country Club Vista) and highlighted conditions that indicated the area was likely “plateauing”. Among those conditions was a “days on market” figure that was twice the Bay Area average and a developing trend of homes selling for less than asking price. Essentially, while the area was projected to maintain most of the gains it made in the past three years, there was sufficient reason to believe that prices had peaked.
In many ways, July’s data has reinforced this prediction. For one, the median sale price of Richmond Waterfront homes has grown consistent. The typical home was selling for $561,500 a few weeks ago—a figure that remains close to the six-month average of $572,945. Similarly, while many homes continue to sell below their listing price, the difference between listing and closing prices has steadied: It was a $70,000 difference back in May, a $55,000 difference in June, and a $63,000 difference in July.
This is noteworthy because many other parts of the Bay Area frequently see erratic disparities from month to month. Take Walnut Creek, for instance: Its median home sold for $63,500 above the asking price in January, but closed for $35,000 below asking price the following month—a $100,000 shift. In fact, even in cities where homes generally sell a certain way (whether it’s above or below the asking price), the differences often bounce between small and large sums each month. The Richmond Waterfront is, by comparison, remarkably consistent.
Even averaging out the “days on market” figures of single-family homes, condos, and townhouses, the time a house takes to sell has been steady (it was 33 days in June, and 31 in July). However, these trends have shown signs of increasing—or at the very least, flattening out—in the future. If that is the case, it would be yet another indication of a cooling market.
Lastly, whereas the Bay Area has generally struggled with low inventories that have driven up prices and contributed to erratic market behavior, Richmond Waterfront’s supply and demand for homes has remained uniform for the past six months. Since inventory is not disrupted by significant influxes (or reductions) of supply, this has helped housing prices stay level.
Taken together, there is a strong case to be made for the idea that Richmond Waterfront has reached its peak. This is not a bad thing, however: In the world of real estate, consistency is important for both parties in a home purchase. It tells homeowners that they have arrived at the optimal point to sell, and buyers can be more confident on where they stand when searching for homes and making offers. This makes it the perfect place to buy or sell a home.
With this in mind, if you are thinking of buying or selling a home, whether it’s in the Richmond Waterfront area (including Point Richmond, Marina Bay, and Country Club Vista) or even the greater Bay Area, Lifestyle Real Estate Services is here to help guide you through the process.
We want your home to be the center of attention—not our faces—which is why we don’t simply sell homes, we market them. By doing so, we’ve been able to get homeowners more money than real estate agencies that just want to sell your home. So what are you waiting for? Call us today!