Oakland, CA Metro Area Housing Market Analysis - September 2024
The Oakland, CA metro area housing market in September 2024 presents a complex landscape with varying trends across different metrics. The Median Sales Price has increased to $917,250, reflecting a modest year-over-year (YoY) growth of 1.9%. This indicates a steady appreciation in home values, albeit at a slower pace compared to previous years.
Conversely, the median Price Per Square Foot has decreased by 2.2% YoY, now standing at $617.60. This decline suggests that while overall home prices are rising, the cost per square foot is experiencing downward pressure, potentially due to larger homes being sold or a shift in buyer preferences.
In terms of market activity, the number of Homes Sold has risen by 1.1% YoY, totaling 1,652 units. Pending Sales have also seen a slight increase of 1.4% YoY, reaching 1,800 units. These figures indicate a stable demand in the market, supported by a significant 11.0% YoY increase in New Listings, which now total 2,431. The inventory has surged by 35.9% YoY to 3,825, providing more options for buyers and potentially easing competitive pressures.
The Months of Supply, a critical indicator of market balance, has increased dramatically by 60.0% YoY to 2.3 months. This suggests a shift towards a more balanced market, moving away from the seller's market conditions that have prevailed in recent years. The Median Days on Market have also increased by 6.0% YoY to 20 days, indicating that homes are taking slightly longer to sell.
The average sale to list ratio has decreased by 1.6% YoY to 102.8%, while the percentage of Homes Sold above list price has dropped by 10.1% YoY to 52.7%. These changes suggest that buyers are gaining more negotiating power, and sellers may need to adjust their expectations accordingly. Additionally, the percentage of Price Drops has increased by 1.4% YoY to 28.4%, further highlighting the need for sellers to be more flexible with pricing.
Finally, the percentage of homes going off the market in two weeks has decreased by 8.6% YoY to 41.1%, indicating a slowdown in the speed at which homes are being snapped up. This could be attributed to the increased inventory and longer days on market, giving buyers more time to make decisions.
Overall, the Oakland housing market in September 2024 is characterized by a mix of rising home prices and increased inventory, leading to a more balanced environment. While demand remains steady, the market is showing signs of cooling, with longer selling times and more price adjustments. Buyers may find more opportunities as the market shifts, while sellers may need to adapt to the changing dynamics.
