Buying a Home in Vallejo in 2023 or 2024: A Market Update

Are you planning to buy a home in Vallejo, California in the latter part of 2023, or in 2024? Looking for an update on current trends within the Vallejo real estate market? You’ve come to the right place!

Below, you will find an assessment of current housing market trends in Vallejo, California, and what home buyers should expect in 2024. This report is intended to help you make a more informed home purchase by understanding market conditions.

Update on the Vallejo Housing Market in 2023

Over the past few years, the Vallejo real estate scene has followed the same general pattern as most cities across the San Francisco Bay Area. It was already competitive going into the COVID pandemic, and then shifted into turbo mode during the second half of 2020.

During 2021, Vallejo and the broader Bay Area real estate market experienced some of the most intense competition among buyers that we’ve ever seen.

But all of that began to change in 2022, when mortgage rates more than doubled. This caused the real estate market to cool down considerably, easing the competition among home buyers.

Now, as we approach the fall of 2023, the Vallejo real estate market appears to be heating back up again. The overall pace of the market has increased since the start of this year, with homes selling faster and with more offers.

Inventory has a lot to do with these trends. Like most of the Bay Area, the Vallejo real estate market is currently suffering from an inventory shortage that’s been going on for many years. This will affect anyone who plans to buy a home in Vallejo through the end of 2023 or into 2024.

Vallejo Home Prices Rising Again in 2023

Home prices in Vallejo peaked during the summer of 2022, with the median home price reaching an all-time high of around $574,000.

Prices dipped slightly during the first part of 2023, a trend seen in most cities across the U.S. This was the result of rising mortgage rates and a general cooling trend within the real estate market.

Now, however, home prices in Vallejo seem to be rising again. We can see this when reviewing data provided by Zillow, along with the latest Multiple Listing Service reports. This suggests that the Vallejo real estate market might have hit “bottom” earlier in 2023, with the possibility of steadily rising prices ahead.

According to an August 2023 report from the California Association of Realtors, the median sale price within the surrounding Solano County was around $600,000. The median price for the broader San Francisco Bay Area was over $1.2 million, during that same timeframe.

Vallejo is actually one of the most affordable real estate markets in the Bay Area. In fact, when you look at the major cities in our region (by population), Vallejo ranks as the most affordable. Because of this, it tends to attract buyers from elsewhere in the Bay Area and across California.

Despite this relative affordability, those who are planning to buy a home in Vallejo might want to do so sooner rather than later. If this real estate market has truly passed the bottom of its post-COVID downturn, which seems likely, home prices could rise steadily for the foreseeable future.

Tight Inventory Conditions Have Accelerated the Market

As mentioned above, real estate supply levels within the Vallejo area plummeted during the pandemic. In 2021, for example, the city of Vallejo had about a 0.8-month supply of homes for sale. That was an all-time record low, and miles below what’s considered to be a balanced market.

Inventory conditions have improved a bit since then, thanks to a sharp increase in 2022. But there is still a significant shortage of homes for sale, when compared to the number of buyers in the market.

This lopsided inventory situation does several things:

• It makes the market more competitive for buyers, since there are more people seeking homes than there are properties available.
• It puts upward pressure on prices, which is partly why home prices in Vallejo have started to climb again.
• It gives sellers a bit more negotiating leverage when it comes to the price and other terms of the sale.

Bottom line: The Vallejo real estate market has accelerated since the start of 2023. But it’s not quite as “frenzied” as it was during the pandemic-fueled home buying surge of 2021.

Tips for Buying a Home in Vallejo in 2023 – 2024

Home buyers in Vallejo can still succeed in today’s real estate market. They just need to bring their ‘A’ game. So let’s talk about some of the things you can do to increase your chance for success.

1. Research sale prices: Market awareness goes a long way when it comes to buying a home. It helps you make a smart offer in a timely fashion, which is crucial in a competitive real estate market. Start by researching recent sale prices in and around Vallejo, to get a sense for what homes are selling for.

2. Make a strong first offer: If you find yourself competing with other home buyers, you will probably only get one chance to make an offer. And this is where that market research mentioned above comes back into play. Try to make your first offer as strong as possible, based on current market trends and recent sale prices.

3. Pack some patience: In a competitive real estate market like Vallejo, California, you might not get the first home that fits your needs. You might have to put in offers on several properties, before you ultimately succeed. That’s the reality of a competitive market with low supply levels. In such times, patience and persistence become increasingly important.

4. Get pre-approved: If you’re like most home buyers in Vallejo, you will need mortgage financing to facilitate your purchase. In that case, you could benefit by getting pre-approved for a mortgage loan before you enter the market. This will help you expedite your housing search by zeroing in on a specific price range, and might make the seller more inclined to accept your offer.

Need a mortgage loan? Bridgepoint Funding is your local Bay Area mortgage broker. We work with a variety of lenders and offer a wide range of loan options. If you need a mortgage loan to buy a home in Vallejo, or elsewhere in the Bay Area, please contact our staff!