August 2018 Emeryville Real Estate & Rental Report: Is the market finally cooling?
The most common real estate question for many prospective buyers is anticipating when the market will “cool down”. When will it shift to a buyer’s market? In general, a couple of things point towards this shift occurring:
- Supply is up
- Sales are down
- The Average Day on Market (ADM) is up
Real Estate Supply UP, Number of Sales DOWN
First, let’s look at the number of sales versus the current inventory. As you can see below, the real estate supply in Emeryville is as its highest within the last year and the number of units sold is fairly low. This definitely points to a “cooling” market.
Average Days on Market number creeps up
Emeryville’s Day on Market have been creeping up since April (see graph in Emeryville section below). However, 21 days is still a very short timeframe for a close of escrow. Traditionally, a close of escrow of 30 days is the norm.
The data suggests the market is starting to shift a bit but there’s no guarantee it will continue on this trajectory based on many factors. We still have a relatively short supply of inventory and properties that are desirable and well marketed are experiencing multiple offers and still go above asking.
What is a “Buyers Market”?
A buyers market is defined by the months of supply for a certain region.
- Buyers market: Supply > 6 Months
- Sellers market: Supply < 6 Months
- Balanced market: Supply = 6 Months
Total number of listings for sale/average sales per month = Supply
Let’s look at Emeryville numbers:
- In the last 12 months (September 2017 – August 2018) 161 properties sold in Emeryville
- The average sales per months for the last 12 months is 12.9
- Currently there are 22 listings on the market
The supply for Emeryville is 1.7 Months.
Therefore, I believe we are still in a strong sellers market. Time will tell if the trend of slow cooling will continue. Real Estate isn’t an exact science and many aspects influence the market.
For a more detailed view, I suggest to read the California Housing Update that is published by CAR (California Association of Realtors).
Another Single Family Home sells in Emeryville
4310 Adeline Street, a 3 bedroom, 1 bathroom 1183 sq. ft. house was offered at $599,978. It sold for $677,000 within 13 days. The offer was an all cash offer and the MLS didn’t show how many offers were submitted.
There are currently 22 active listings in Emeryville that range in price from $277,400 for a below market rate condo on 41th Street, to $999,000 for a single family home on 47th Street. Browse all Emeryville listings on EastBayModern.com.
Rental Market Trends:
The average rent for an apartment in Emeryville is $2,883 according to rentcafe.com. This represents a 3% decrease compared to the previous year, when the average rent was $2,984.
Studio apartments in Emeryville are renting for $2,365 a month, while 1-bedroom apartments ask on average $2,711 a month; the average rent for a 2-bedroom apartment is $3,297.
August 2018 Sales by The Numbers:
In August, the lowest sale price went for $294,400 for a below market rate studio at the 1500 Park complex. The highest sales price was $868,000 for Loft at the Besler building.
Types of Homes Sold:
The number of homes sold in August increased from 12 to 16.
Studios & 1 Bedroom Homes:
The number of 1 bedroom and studios sold increased from 4 to 10.
2 Bedroom Homes:
The number of 2 bedroom homes sold decreased from 7 to 4.
3 Bedroom + Homes:
One 3 Bedroom condo and on single family home was sold.
Median Sales Price vs. Median List Price:
Both median sales and list price decreased in August with the sales price increasing from $758K to $635K and list price from 664K to 598K.
Average Days on Market:
The Average Days on the Market for Emeryville homes also increased from 20 to 21 days.
Is this helpful?
This August report represents one year of these Real Estate market insights and I’d love your feedback. Have recommendations to improve them or topics to spotlight?
Please Email East Bay Modern REALTOR® Nicole Gruen.