Mind boggling real estate market appreciation in one year

By
Real Estate Agent with Alain Pinel BRE 01367196

We survived the real estate market crash when property values dipped more than 50% from where they were in the peak of the market. But then, the values came roaring back in many places.

As the economy improved, and interest rates remained low, many home buyers emerged in their pursuit of owning their own homes. However, there are so few homes for sale. Some homeowners haven't quite recovered from the plummeting real estate value and they are staying put. Others are concerned they can't afford the next one they buy.

I have clients who bought their Oakland Hills home for $900K in the bottom of the market in 2011. Today, that home is worth $1.4M after improvements. A job change is making them consider moving closer to Palo Alto where a similar home would cost them upwards of $2M. So they are are not too keen on selling their home because the next one will cost a lot more. Being in the high tech industry, they can telecommute from time to time which makes it more attractive for them to stay where they are.

In the meantime, a look at soaring market values over a span of one year makes us gasp in disbelief. And at the other end of the spectrum are those, especially in less urban areas, who barely changed.

Here's a sampling of home value appreciation in California, according to Corelogic

 

Counties and Cities

% Change in Appreciation

in May 2015 a year from May 2014

Alameda County

11%

Alameda

15%

Berkeley

34%

Fremont

9%

Oakland

18%

Contra Costa County

3%

Hercules

36%

Lafayette

42%

Moraga

18%

Walnut Creek

14%

El Dorado County

9%

Rescue

131%

South Lake Tahoe

7%

Fresno County

10%

Fresno

8%

Humboldt County

-0.7%

Eureka

-6.5%

Marin Country

9%

Belvedere Tiburon

-16%

San Rafael

7%

Sausalito

56%

Stinson Beach

142%

Mendocino County

18%

Mendocino

61%

Monterey County

10%

Carmel

-14%

Monterey

4%

Pebble Beach

9%

Napa County

-2%

Napa

-8%

Saint Helena

13%

Sacramento County

6%

Folsom

7%

Sacramento

11%

San Francisco County

21%

San Mateo County

19%

Menlo Park

29%

Palo Alto

47%

San Mateo

25%

Ssnta Clara County

11%

Los Gatos

16%

Mountain View

17%

San Jose

9%

Solano County

7%

Benicia

19%

Vallejo

8%

Sonoma County

10%

Bodega Bay

-40%

Healdsburg

17%

Stanislaus County

13%

Modesto

16%

Yolo County

4.2%

Davis

-6.3%

West Sacramento

7%


When we say “Real estate is local” --- believe it! Not all markets are hot, hot, hot….and not all of them suffered a major market collapse either.

 

Side note: Before we moved to the Bay Area, we visited a number of times and brought back with us copies of the real estate magazines like Homes and Lands to show our friends what real estate values are like. And they all shook their heads at how much real estate costs around here. 

Here's a nice sampling of homes for sale in the San Francisco market, courtesy of Realtor.com. Yeah, a 1 bedroom/1 bath condo in the city can cost half a million dollars. Believe it!

 

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Rainmaker
1,288,168
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Appreciated this...in my area, too, we saw a plummeting of values, but only now are we starting to see a soft recovery underway.  

Jul 09, 2015 06:18 AM #1
Rainmaker
709,142
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Li Read, some of our cities recovered with a vengeance, and we're seeing multiple offers at significantly above list price....it's making buyers crazy!

 

Jul 09, 2015 06:24 AM #2
Rainmaker
2,231,436
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

WOW - Some of those areas are mind boggling alright!  While I have billed the appreciation as recovery in housing values, I have divorced myself from the idea we could move toward a bubble in some areas.  I hope that isn't true.

Jul 09, 2015 07:22 AM #3
Rainmaker
709,142
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Myrl Jeffcoat --- I also hope we aren't going to have another bubble....and that everyone has learned a valued lesson to make sure it doesn't happen again.

 

Jul 09, 2015 10:59 AM #4
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Rainmaker
709,142

Pacita Dimacali

Alameda/Contra Costa Counties CA
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