Looking Back on 2018
There were almost too many local, national and international political, economic, social and ecological factors impacting the 2018 Diablo Valley & Lamorinda real estate market to count. In the first half of the year, market conditions were very hot, and there were strong year-over-year appreciation rates. Come summer/early autumn, real estate and financial markets began to shift distinctly cooler. Looking at 2019, there are many wild cards whose impacts are difficult to predict: extremely volatile financial markets, fluctuating interest rates, contentious national politics, international trade issues, spiraling debt levels, employment growth – and a dramatic surge of local high-tech unicorns that plan to go public, which could create a tsunami of new wealth in the Bay Area.
Annual Median Home Sales Prices
In 2018, the median house sales price in the Diablo Valley & Lamorinda increased by 5.2% or $65,000.
Quarterly Median Price Changes
On a quarterly basis, the median house sales price peaked in Q2 and then declined in Q3 & Q4: Note that this is not an uncommon dynamic in previous years as well. The percentage year-over-year quarterly appreciation rate has been stepping down since late last year, but remains positive.
Home Sales Breakdowns
Selected Market Indicators
Many of the market indicators reflect the huge role seasonality plays in the market, whether measuring inventory or demand. Conditions have definitely cooled since the height of the spring selling season, as is common, but many of these statistics do not show dramatic changes from recent historical trends. However, price reductions and expired, no-sale listings have increased, and the sales price to original list price percentage has dropped, clearly indications of some changes occurring. December and January are the two lowest-activity months of the year, and we will probably have to wait until the early spring market begins for more insight into where the market is heading.