Like much of the Bay Area, the Walnut Creek housing market has been pretty hot lately. Strong demand and limited inventory have forced home buyers to compete fiercely with one another.
That’s where we are now. But what about the future? What will the Walnut Creek real estate market look like in 2017? Here are some real estate trends, forecasts and predictions from a variety of sources.
Home Price Trends, Past & Present
Like most cities across the U.S., home prices in Walnut Creek took a tumble during the second half of the last decade. This was a direct result of the housing crisis that shook our nation’s economy. But around 2010, Walnut Creek home prices bottomed out and began to rise again — and they rose significantly.
As of August 2016, home prices in the area are now higher than before the housing collapse. In other words, they’ve never been higher than they are right now.
According to both Zillow and Trulia, the median sales price for the Walnut Creek housing market is currently around $800,000. Trulia reported a 12% increase in the median sales price over the last year or so.
Looking forward, most forecasts and predictions for the Walnut Creek housing market (and the broader East Bay) call for a slowdown in home-price appreciation. This mirrors the outlook for the entire Bay Area, in fact. Housing analysts and economists expect to see some cooling in 2017, where home values are concerned.
Zillow Forecast for Walnut Creek Housing Market in 2017
Zillow, the real estate information company, employs a team of economists to track home prices in cities across the country. According to the Zillow Home Value Index, median house prices in Walnut Creek rose by 7.8% during the 12-month period ending in August 2016.
Looking forward, however, their forecast for the Walnut Creek housing market is much more modest. They anticipate that home prices will rise by only 1.2% over the next 12 months (through August 2017). That would be a big change from one year to the next, if it actually plays out that way.
In their words: “Walnut Creek home values have gone up 7.8% over the past year and Zillow predicts they will rise 1.2% within the next year.”
Analysts: Bay Area Market Will ‘Slow Down a Bit’
Last year, John Burns Real Estate Consulting gave a presentation at the SFJAZZ Center in San Francisco. Among other things, they offered a real estate market outlook for the Bay Area. One of the key takeaways was that the market is “going to slow down a bit” over the coming years. This outlook coincides with Zillow’s long-term forecast for the Walnut Creek real estate market.
Market predictions and forecasts are tricky, because they’re based on conditions that change constantly. So you have to take them with a grain of salt.
With that being said, the general consensus among housing analysts and economists is that the Bay Area (and Walnut Creek) real estate market will likely cool down over the coming months. Additional home price gains are expected in 2017, but they could pale in comparison to what we’ve seen over the last year.
Your Walnut Creek Mortgage Company
Bridgepoint Funding is a mortgage company based in Walnut Creek. We offer a wide variety of financing options for home buyers and homeowners in the area. Whether you’re buying or refinancing a home, we can help you understand your mortgage options. Please contact our friendly staff today with any mortgage-related questions you have!
Disclaimer: This article includes forward-looking statements (predictions and forecasts) regarding the Walnut Creek real estate market in 2016 and 2017. Such statements were provided by third-party sources not associated with our company. This material has been provided for informational purposes only.