East Bay Housing Market Report: Juicy January 2021

Real estate momentum continued building in the East Bay housing market in January.

Our latest analysis of year-over-year real estate market data reveals that homes sold for higher prices in fewer days in January 2021 compared to January 2020. They also sold faster and in greater quantity.

Sound familiar? Yeah, we're having deja vu, too. Months of it.

Instead of being weakened by the pandemic economy, local real estate sales are still super-fueled by buyers taking advantage of rock-bottom interest rates and a work-from-home lifestyle that allows them to migrate deep into the suburbs. Many sellers are either looking for bigger houses after being isolated in small quarters for nearly a year, downsizing, or moving out of California.

Just when you thought prices couldn’t get any higher, they did — by a lot.

It's a heady time for home sellers. Year-over-year, we saw double-digit growth in median sales prices for detached single-family homes in most cities we track.

Stand out statistics: The median sales price in El Cerrito rose a whopping 33% – from $825,000 to nearly $1.1 million. The time it took for El Cerrito homes to sell shortened from 31 days to just 12 days.

Price increases in Castro Valley (17%) and Hayward (14%) could indicate that traditionally overlooked suburbs are attracting more home buyer attention and competition.

Despite rising prices, more (and more and more) homes sold.

The number of detached single-family homes sold soared in January 2021 compared to January 2020 – the likely result of historically low interest rates and the COVID-era desire for more space and yards.

Stand out statistic: In Oakland, a staggering 373 homes sold or went into escrow in January, compared to 203 properties during the same time last year.

The fast pace kept buyers on their toes.

The SF Bay Area's historically low housing inventory is fueling wild competition among buyers, who are willing and able to offer quick closes.

Where are detached homes selling the fastest? The average Albany single-family home was listed and sold within a mere 11 days in January, compared to 60 days a year ago. San Leandro homes also sold within 11 days, a tad faster than the 16 days it took last year.

Home buyers couldn't bank on the list prices.

Buyers continued to discover that list prices had little to do with the reality of the actual selling price. We saw plenty of properties listed at low price points to attract multiple competitive offers.

Stand out statistics: In Alameda County, homes in Berkeley, Albany, and Oakland sold for 16%-18% over the advertised price. In Contra Costa County, homes in El Cerrito and Concord sold on average for 21% over the list price.

Want truth-in-advertising and less competition? Look at condo sales.

Good timing for buyers: Condos sold closer to the asking prices in most cities we track. And median sales prices dropped in many places, including Oakland, the Lamorinda area, and Walnut Creek. Berkeley experienced a big dip of 18%.

Tip for condo owners who are considering selling: The timing looks right if you are in Martinez, Richmond, and Pleasant Hill, where median sales prices jumped as much as 40% year-over-year.

What’s happening in YOUR city?

The following data is for detached single-family homes. Sources: Bay East Assoc. of Realtors and Contra Costa Assoc. of Realtors. Compiled by Abio Associate Broker Diana Smith.