The housing shortage in California is real and there simply isn’t enough inventory to accommodate every home hunter. Many potential buyers are intimidated from entering the market when they continually see homes going way over asking price.
Why do some homes sell significantly over asking price while others can be bought at asking price or even below? Some areas of the East Bay and Emeryville tend to have a history of underpricing. Underpricing is when the agent and seller decide to market the property significantly below its value. This strategy attracts more buyers, increases competition and they ultimately receive a higher sales price. Of course the success of the strategy depends how attractive the property is and how well it is marketed.
But not all listings are underpriced. In May, there were a total of 16 Sales in Emeryville:
- 2 went below asking price
- 4 went over asking between o- 10%
- 6 went over asking between 10%-20%
- 3 went over asking between 20%-25%
Out of the 16 sold properties, 4 were all cash offers and 12 buyers utilized financing.
How do you know if the listing has been over or even underpriced? It’s important to talk to your realtor and have them do a CMA (comparative market analysis) for you. That way, you can get a better feeling on how the property has been priced and how much you might have to go over asking in order to have your offer accepted.
There are currently 16 active listings in Emeryville that range in price from $135,000 (a below market rate unit on 40th St) to $1,399,000 (duplex on 64th St). Also included in our latest listing is a big two bedroom unit in the Besler building on Harlan Street just came on the market this week.
May 2018 Rental Report:
Zumper.com published their latest monthly rental report for the Bay Area that covers 30 cities in our region. Emeryville leapfrogged Sunnyvale to and now has the fourth highest rents in our region. The price of one bedroom units jumped 5% to a median of $2,990, while two bedrooms increased 1.1% to $3,770.
Read their full report on Zumper.com →
May 2018 Sales by The Numbers:
In May, the lowest sale price was $350,000 for a 470 sq. ft. studio on Emerald Drive and the highest sales price was $908,000 for a 1339 sq. ft. townhouse on City Limits Circle.
Types of Homes Sold:
The number of homes sold in May decreased slightly from 16 to 15.
Studios & 1 Bedroom Homes:
The number of 1 bedroom and studios sold decreased from 11 to 8.
2 Bedroom Homes:
The number of 2 bedroom homes sold increased from 5 to 7.
3 Bedroom + Homes:
No 3 bedroom or detached homes were sold for the third consecutive month.
Median Sales Price vs. Median List Price:
Both median sales and list price increased steadily in May with the sales price increasing from $592K to $599K and list price from $572K to 590K.
Average Days on Market:
The Average Days on the Market for Emeryville homes also increased slightly from 16 to 17 days.
Further insights or shopping for an agent?
I love talking about this stuff! Let’s meet for coffee and I can share more local Real Estate insights with you.
Email East Bay Modern REALTOR® Nicole Gruen→.
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The rental and sale prices need to go down a lot! This is why we have so many homeless people. It’s incredible how no one cares. And until then we will continue to see more homeless people. $175,000 is now the new low income. Smh!
Lizette, your understanding of economics is hysterical. Once the home prices go down, as you see it, then all the homeless people will move into these cheap homes and where do you think all the people currently living in those homes are going to go? And now that they have lost all of their equity and are underwater and need to declare bankruptcy, where do you think they are going to live without credit? Before assuming that “no one cares” you might want to think about how “incredibly” naive you are.
But YOU’RE assuming they have recent loans and large balances. If they are long term owners, a drop in equity would be tolerable for them.
Put another way, the prices must come down or wages go way, way up.
Supply? It’ll only work if it drives the prices of existing homes down.