2014 has been a great year for the Lafayette real estate market. And with recent 2015 projections coming out for the U.S. real estate market, 2015 will likely be even better. Freddie Mac’s economic outlook for 2015 calls for 3 percent growth in the U.S. economy, which means good news for Bay Area housing. Home value appreciation is expected to drop slightly which is a positive for buyers and sellers. Home values have appreciated so much throughout the last year so many homeowners are all in all in a good place. This also means buyers will be more active. As far as interest rates are concerned Freddie Mac projects mortgage rates to average 4.6 % and increase up to 5 % by the end of the year. So, if you’re looking to buy, now is the time, as rates have dropped below 4% in the recent weeks. Overall, projections are positive for both buyers and sellers in 2015.
As far as the month of November for Lafayette real estate, the market saw it’s ups and downs but overall finished well for the month. The median sale price was down by 8% year over year from $1,056,000 to $975,000, which is the lowest price we’ve seen all year. Corresponding to this, the number of properties under contract increased by 25% year over year, from 16 to 20. Buyers acted with the dip in sold prices. Contrastly, the number of properties sold were also down, from 17 in November 2013 to 13 in November 2014, a 24% decrease. Another decrease in the Lafayette real estate market in November was in the number of for sale properties. There was a year over year decrease of 22%, from 65 to 51. Lastly, the number of days spent on the market decreased from 47 to 26, likely due to the median sold prices and the lower inventory levels. November was a so-so month for the Lafayette real estate market, let’s hope December sees more positive increases across the board.