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HISTORICAL BAY AREA & LAMORINDA MARKET It is helpful to provide historical context to our real estate market to understand past PERFORMANCE

cycles and how Lamorinda faired compared to the rest of the Bay Area. Each cycle always has different market influences and therefore makes pinpointing the exact timing of when cycles begin and end very difficult. Even during bubble or irrational exuberance periods markets can run well beyond what market experts believe is rational. An example is the 2008-9 Financial Crisis caused by early 2000’s lax underwriting mortgage standards that allowed housing prices to skyrocket from zero-down and negative amortization loans. Most economists in 2003-4 believed homes were overvalued but values continued to rise another three to four years until 2007-8. Over the last thirty plus years Bay Area real estate markets were not only influenced by the health of our macro economy but also heavily influenced by Bay Area high-tech sector. Innovation creates new markets that translate into wealth creation that propels the growth of our real estate markets. The Silicon Valley influence today extends well beyond the Peninsula. In recent years the run up in Lamorinda home prices has been fueled by “new-tech” companies headquartered in San Francisco such as Uber, Airbnb, Lyft, Pinterest, Stripe, Salesforce, Twitter, Dropbox and Square where previously the lengthy commute to the Silicon Valley prohibited Lamorinda from being a viable option to most tech workers. The following page provides a historical perspective of past cycles and how Lamorinda price appreciation compares to the rest of the Bay Area.

MartinHomesTeam.com

Profile for Darrick Martin

Martin Homes Team Overview  

Martin Homes Team Overview