Lafayette Q2 2023 Market Update

Lafayette 2023 Q2 Market Update MartinHomesTeam.com

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Lafayette 2023 Q2 Market Update MartinHomesTeam.com

Price Per SQFT

List Price ($M)

Sold Price ($M)

# of Home Sales

Lafayette Averages By School & Neighborhood Last Six Months

Q2 Market Builds Momentum From Q1 Strong Start

Lafayette (median)

98

• 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

Burton Valley Elementary Burton Valley Laf. Valley Estates Saranap / Condit Trails

33 $1.89 $1.82 17 $1.94 $1.83 2 $1.23 $1.17 7 $1.69 $1.64 7 $2.15 $2.16

Happy Valley Elementary Happy Valley Happy Valley Glen Hidden Valley Upper Happy Valley

21 $3.40 $3.45 $914 3559 8 $5.63 $5.76 $1,093 5025 4 $1.26 $1.23 $862 1527 4 $1.86 $1.86 $730 2666 5 $2.79 $2.80 $815 3555

Lafayette Elementary Downtown Silver Springs Trails

17 $2.09 $2.08 $902 2379 7 $1.92 $1.94 $820 2413 2 $2.49 $2.22 $1,055 2363 8 $2.14 $2.17 $935 2354

Springhill Elementary Acalanes Baywood Reliez Valley Springhill

27 $2.54 $2.56 $807 3237 4 $1.85 $1.89 $848 2213 14 $2.57 $2.63 $776 3323 9 $2.80 $2.74 $836 3559

800%

$1+ Billion

6.0%

300%

-29% -11% SF Earthquake

+110%

Great Recession

2.0%

2023

2021

2022

2019

2020

2017

2018

2015

2016

2013

2014

2011

2012

2010

2009

2007

2008

2005

2006

2003

2004

2001

2002

1999

2000

1997

1995

1998

90's Recession Source: Case Shiller Bay Area High Price Home Index. 2023 data thru Apr 1996

1993

1994

5 yrs

Dotcom Bubble

7 yrs

-12%, 4 yrs

0%

1991

100%

+57%

1 yr

200%

4.0%

2 yr

0.0%

30 Yr Fixed Rate Mortgage

400%

1992

With Skilled Full-Time Crew

8.0%

30 Year Mortage Rate

1989

Licensed General Contractors

13 yrs

500%

1990

In Lafayette

-13% 1 yr

1987

Four Generations

10.0%

+179%

1988

Annually

Rising Inflation

600%

Home Value Appreciation

$100+ Million

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.

700%

Sales Volume

12.0%

Neighborhood Lafayette (average)

98 $2.43 $2.42 $881 2787 $2.08

$2.05

$887

2467

$911 2137 $938 2147 $949 1374 $859 2017 $888 2448

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 *****************ECRWSS***** Local Postal Customer

SqFt

• 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?”

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