Sales of single-family homes are slowing down in Alameda County, but the cost of a home still remains out of reach for most residents.
Only 17% of households were able to afford a median-priced home at a cost of $1.26 million during the third quarter of the year, according to the most recent data from the California Association of Realtors. The minimum qualifying income to buy a home at that price is $292,400 a year. The median household income in Alameda County is $104,888 a year and the median per capita income is $49,883 a year.
The median price of a single-family home increased 0.8% from $1.24 million in September to $1.25 million in October, though that’s still 2.3% less than it was a year prior when it was $1.28 million.
Home sales were down 35.7% from a year ago and 15.1% from a month earlier.
That mirrors trends in both the Bay Area, which saw a 13.7% drop in month-over-month sales and 37.3% drop in year-over-year sales, and the state, which saw a 10.4% decline in month-to-month sales and a 36.9% decline in year-over-year sales.
“While October’s sales and price results were weaker than what we’ve experienced in the past couple of years and could slow further in the upcoming off-season, the market bottom could be in sight,” association President Jennifer Branchini said in a statement. “Homes are still selling relatively quickly at 23 days on the market, one in four homes is selling above list price due to limited inventory, and with median price growth remaining positive in four of the five price segments, home prices are holding up reasonably well.”
The 30-year, fixed-rate mortgage dropped below 7% to 6.61% during the past week, but that doesn’t signal immediate good news for home prices.
“Mortgage rates tumbled this week due to incoming data that suggests inflation may have peaked,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “While the decline in mortgage rates is welcome news, there is still a long road ahead for the housing market. Inflation remains elevated, the Federal Reserve is likely to keep interest rates high and consumers will continue to feel the impact.”
The annual inflation rate was 7.7% in October and the shelter index saw a 6.9% year-over-year and also had the largest monthly increase since August 1990.