Is Oakland real estate market a good investment market right now? , by Kenneth Session.

from The Power Is Now Magazine | August, 2021

Women’s Equality Day

By Kenneth Session

Is the Oakland Real Estate Market a Good Investment Market Right Now?

The Oakland real estate market is currently very hot. Low interest rates and the stunning scenery are drawing homebuyers into the market. Unfortunately, eager homebuyers are finding a market with a deficient supply. As of May 2021, Oakland had 1.5 months’ supply, a sharp decline from 3.8 months witnessed last year in May. This market imbalance has pushed home prices higher. A situation that has made finding a home in Oakland very difficult and has made some buyers bow out of the market. On the flip side, the market is great for sellers. The very competitive market is seeing homes sell for great prices. Additionally, as the economy recovers, job growth in Oakland will continue to rise as more businesses go back to the offices. But are these great incentives to invest in the Oakland real estate market?

If you are planning to invest in Oakland, it is essential to keep in mind that home prices have been trending up this past year and more in the second quarter. The price growth in Oakland has gone up by 3.3% this year compared to last year. The Median prices in Oakland are a bit on the higher side and are continuing to go up. In June, the median listing price was $950K. The demand is so high that homes are selling 17% over the list price, and according to Redfin.com, hot homes are seeing people pay 34% over the listing price. Home sales have also increased in Oakland this past six months. Approximately 3,820 homes were sold during this period and with 76% of these

being single-family homes, followed by 23% being condos, and the 4% left townhouses. This data shows that people are in the market for singlefamily homes. And as so, homes in Oakland are staying on the market for just 13 days, and the very hot homes, just eight days. So, if you are thinking of going into the market, be prepared to have a bidding war as listed homes receive multiple offers. Offers being accepted have also been increasing in recent months, as listings have also increased.

And to bring it a lot closer, 466 homes were sold in June this year, a significant increase from the 259 sold last year. The growth can be attributed to the fact that more homes are coming onto the market. Data from Compass showed a slight slump in the number of homes actively listed in April and May, but the numbers rose quickly in June.

The competitive nature of the real estate market in Oakland in 2021 can be described as a sellers’ market. The unprecedented price increase has seen people be outpriced out of the market. In that regard, there have been both migrations into and out of the area. But experts advise that demand in Oakland is set to remain very strong for the next 12-months. And as more people get vaccinated, the uncertainty brought on by the pandemic will begin to clear, and people are going to go back to work. Something that will further improve the economy.

Sources:

https://www.bayareamarketreports.com/trend/oakland-berkeley-real-estatemarket-conditions-prices https://www.redfin.com/city/13654/CA/Oakland/housing-market