“Into each life a little rain must fall” Longfellow reminds us, but also into each hot housing market, a little price decline and an increase in days on market must occur. And so it is, that according to real time real estate market data company, Altos Research, the Oakland and Berkeley real estate markets are in a summer slowdown with the average days on the market rising and prices falling.

 

Oakland’s average days on the market started increasing after Memorial Day when average days on market was about two weeks, where now, in mid-July, the average days to get into escrow  is about 30. In Berkeley, the average days on the market went from an average of less than a week on the market in late May to 30 this week.

 

“We first detected a slow down in the upper end of the market in the $1.9 million range and above in May. As we approach August, the market, as it does in the summer, has been a bit slower. The median prices are softening, however, inventory is still low, so prices are not dropping precipitously. It remains a solid seller’s market, Tracy Sichterman, Broker/Owner, Berkeley Hills Realty,  stated.

Click to enlarge image

Click to enlarge

Median prices for homes in Berkeley, according to Altos Research fell from a high of $1.45 million at the beginning of July to approximately $1.32 million in the third week of July. Median prices for homes in Oakland fell from $658k in late June to approximately $610k the third week in July. According to Trulia Trends, the number of sales has dropped from 792 to 719 during the past month, but prices for the overall market have gained 10% year over year. Interesting to note, that five years ago, the median price of a single family home in Oakland was $285,500, on average, through the spring according to the Trulia Trends report, the median price was $688,000. A little rain falling on this hot housing market is a natural correction.

 

In Berkeley, according to Trulia Trends data, the median price of all homes rose 9.6% year over year to $1.2 million. Five years ago, the median price was $605,000. The median price of a one bedroom home from April – July was $850,000, a 37% year over year increase, while five years ago the median price for a one bedroom home was $348,500  according to Trulia.

 

Even with hints of a declining job market in California and the East Bay, the demand has stayed strong in 2017 for homes in the East Bay. Are home buyers taking a summer hiatus as happens each year at this time? Or does this signal a further cooling into fall?