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Lafayette 2023 Q2 Market Update MartinHomesTeam.com
Q2 Market Builds Momentum From Q1 Strong Start
• 2023 Q2 Results – Q2 results built momentum from the Q1 strong start to the year as both prices and homebuyer confidence improved. Local and Bay Area wide results showed modest price appreciation as both economic sentiment and equity markets improved throughout the quarter. Lafayette’s average and median sales price per sqft in the six months ending June 2023 was $881 and $887, respectively, compared to six months ending December 2022 of $872 and $848. While the recent price appreciation is a positive sign our market continues to be defined by a lack of inventory as sellers remain on the sidelines with record low mortgage rates and a low property tax basis. While many homeowners are willing to sell the real question they have trouble answering is “Where would we go?”
• Is Now a Good Time to Buy? We believe so and continue to believe the bottom is behind us. We feel strongly that the market will gain momentum as mortgage rates come down towards the end of 2023 and into 2024. In addition, potential economic stumbling blocks (e.g. 2023 recession concerns, debtceiling crisis, company layoffs, stock market correction) that we started the year off with appear to be behind us.
Historical Bay Area Home Values
Over the last 35+ years in the Bay Area expansionary periods have averaged 8 years while contractionary periods have averaged 2 years. In recent contractionary markets, corrections have been 1 -2 years as capital markets are more efficient. Home values have improved in the last two months.
Erin & Darrick Martin
925.951.3817 / 925.900.8218
Erin@MartinHomesTeam.com
Darrick@MartinHomesTeam.com
DRE#01922810 / 02006564
Kaity De Souza
925.383.2353
Kaity@MartinHomesTeam.com
DRE#02113390
Lafayette Averages By School & Neighborhood Last Six Months Neighborhood # of Home Sales Sold Price ($M) List Price ($M) Price Per SQFT SqFt Lafayette (average) 98 $2.43 $2.42 $881 2787 Lafayette (median) 98 $2.08 $2.05 $887 2467 Burton Valley Elementary 33 $1.89 $1.82 $911 2137 Burton Valley 17 $1.94 $1.83 $938 2147 Laf. Valley Estates 2 $1.23 $1.17 $949 1374 Saranap / Condit 7 $1.69 $1.64 $859 2017 Trails 7 $2.15 $2.16 $888 2448 Happy Valley Elementary 21 $3.40 $3.45 $914 3559 Happy Valley 8 $5.63 $5.76 $1,093 5025 Happy Valley Glen 4 $1.26 $1.23 $862 1527 Hidden Valley 4 $1.86 $1.86 $730 2666 Upper Happy Valley 5 $2.79 $2.80 $815 3555 Lafayette Elementary 17 $2.09 $2.08 $902 2379 Downtown 7 $1.92 $1.94 $820 2413 Silver Springs 2 $2.49 $2.22 $1,055 2363 Trails 8 $2.14 $2.17 $935 2354 Springhill Elementary 27 $2.54 $2.56 $807 3237 Acalanes 4 $1.85 $1.89 $848 2213 Baywood - - - -Reliez Valley 14 $2.57 $2.63 $776 3323 Springhill 9 $2.80 $2.74 $836 3559 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 0% 100% 200% 300% 400% 500% 600% 700% 800% 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 30 Yr Fixed Rate Mortgage Home Value Appreciation
-12%, 4 yrs -11% 1 yr +57% 5 yrs -13% 1 yr +179% 13 yrs Dotcom Bubble Rising Inflation
Source: Case Shiller Bay Area High Price Home Index. 2023 data thru Apr SF Earthquake +110% 7 yrs 90's Recession -29% 2 yr Great Recession 30 Year Mortage Rate
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