Will Dublin’s Condo and Townhouse Market Continue Growing?
When the Dublin Ranch market for detached single-family housing first gave signs of cooling off, we looked to the area’s condos and townhouses to see if they were following a similar pattern. After all, Dublin’s condos and townhouses (or simply “CoTH”) have often outperformed single-family homes (or “SFR”s) in various metrics. Notably, in the past year, the typical CoTH property has closed above asking price far more often and has seen a steeper climb in value than the typical SFR.
So what might the future have in store for condos and townhouses? For starters, while I previously identified a flattening price forecast for Dublin Ranch SFRs, the trend for condos and townhouses predicts continued growth over the next few months. But because of the relatively small sample size for condos and townhouses, we cannot say with absolute certainty that this will remain accurate—it is simply the closest approximation, given the market’s size.
What we do know is that three of the last four months—April, June, and July—have had the highest median sale prices on record, going back to June of 2013. In fact, there is only a single month in the last three years that saw a higher median sale price. These figures help support the notion that Dublin’s condos and townhouses could appreciate a little more in value.
There are a few other things to consider, as they will likely have an effect on CoTH prices: Since the beginning of the year, more and more properties have successfully closed each month. Despite that, there was a notable dip in the number of new properties placed on sale in July—down 23% from the previous months. If supply begins to drop as homes sell faster than they are replaced, the shortage could prompt rising prices.
Another possible factor stems from high prices in other parts of the Bay Area coupled with a persistent lack of inventory. Essentially, many prospective buyers are discovering the difficulties of moving into cities where home prices have skyrocketed as rapidly as inventories have plummeted, and are turning to the lower costs of the East Bay for relief. This influx of serious buyers elevates demand and adds additional pressures to the local housing supply, which (as you have probably guessed) will ultimately lead to higher price tags.
At the end of the day, it seems too early to say that Dublin’s condo and townhouse values have peaked. We may be able to look at statistics on detached single-family homes and find similarities between the two, but there is substantial evidence for a little more growth in the CoTH market.
If you’ve been thinking about taking advantage of these coming months by selling your home, let Lifestyle Real Estate Services help you through the process. We take pride in watching the market closely and determining the best strategy for selling your house. After all, getting the highest price isn’t about simply throwing on a fresh coat of paint and a price tag, it’s about understanding the optimal way to present your house so that buyers can’t help but feel at home when they see it.