A new round of economic forecasts suggest that three East Bay housing markets could see double-digit price gains over the next year or so. These predictions were issued by the economists and housing analysts at Zillow. Concord, Pleasant Hill, and Richmond real estate markets all received 12-month home-price forecasts of greater than 10%.
Concord, Pleasant Hill & Richmond Housing Forecasts
In June 2018, the real estate information company Zillow offered some revised forecasts for housing markets across the East Bay. We analyzed those predictions to see which cities were expected to have the biggest price gains over the next year. Concord, Pleasant Hill and Richmond all had above-average housing market forecasts stretching into 2019.
- Concord: The median home value for this East Bay housing market was approaching $600,000, in late spring 2018. What’s interesting here is that the home-price forecast for the next 12 months exceeds the actual gains that were recorded over the previous year. Zillow reports that the median home value rose by 6.5% over the past year, and they forecast that they will climb by another 12.2% over the next 12 months. *
- Pleasant Hill: This is another East Bay housing market with a strong forecast extending into 2019. The median home value in Pleasant Hill, California recently rose above $760,000, following a gain of 8.5% over the last year or so. Researchers predict that prices will rise by another 11.5% over the next year. *
- Richmond: The most affordable real estate market on this list, Richmond had a median home value of around $503,000 as of May 2018. Prices rose 10.3% over the previous 12 months. The company’s forecast calls for an additional gain of around 11.2% over the coming year. *
Note: These predictions were issued in June 2018, so they extend into late spring of 2019.
Granted, these are just forecasts and projections. They’re an educated guess based on current market conditions and trends. So we probably shouldn’t get too wrapped up in the exact numbers being projected here. The big takeaway is that East Bay real estate markets like Concord, Pleasant Hill and Richmond are expected to outpace the nation in terms of home-price appreciation.
Common Factors for East Bay Housing Markets
These and other East Bay real estate markets have several factors in common. For one thing, housing inventory remains tight across the region, which leads to quick home sales and “lively” competition among buyers.
According to housing analysts, a balanced housing market has somewhere around five to six months of supply. Theoretically, that means it would take five or six months to sell off all homes currently listed for sale, if no new properties came on the market. In 2018, most cities across the country were well below that level.
Supply is particularly tight in housing markets across San Francisco’s East Bay Area. For example, the Concord, Pleasant Hill and Richmond real estate markets all had roughly a one-month supply of homes in May 2018.
Given these conditions, it probably comes as no surprise that homes are selling quickly in these East Bay real estate markets. During the spring, homes listed for sale in Concord, Pleasant Hill and Richmond went under contract in a median of 12 days. The median days on market for the nation as a whole was 32, during that same period.
* Disclaimer: This article includes predictions and forecasts for several East Bay housing markets extending into 2019. These projections were provided by third parties outside of our company. We have compiled and presented them here as an educational service to our readers.