Alameda County Housing Market Will Be Highly Competitive in 2024

By some measurements, the real estate market in Alameda County, California is one of the most competitive housing markets in the state. It currently has the highest percentage of homes sold above the asking price.

This metric indicates a high level of competition among buyers within the Alameda County real estate market. And this will likely continue into 2024 as well.

Here’s an updated look at current housing market conditions in Alameda County, California, along with an outlook for 2024.

Alameda County Homes Selling Above List Price

Earlier this month, the California Association of REALTORS (C.A.R.) published a housing market update with data for all 58 counties across the state. These monthly reports offer some deep insight into current real estate trends in California.

According to the group’s November 2023 report, Alameda County had the highest percentage of homes selling for more than the initial list price. This indicates that buyers are competing fiercely with one another, often in bidding war scenarios that drive up the final sale price.

To quote the November 2023 C.A.R. report:

At least half of the homes sold above their asking price in five California counties. Four of those five counties were in the Bay Area region. Alameda (72 percent) recorded the biggest share in the entire state, followed by San Francisco (67 percent), Santa Clara (65 percent) and San Mateo (58 percent). Glenn County (50 percent) in the Central Valley region was the remaining county with half of its homes selling above the asking price.

Anyone planning to buy a home in Alameda County in 2024 should pay close attention to this trend. This is especially true for the most populous cities within the county, such as Fremont, Hayward, Berkeley, San Leandro and Livermore.

In these and other real estate markets, strong demand from buyers is leading to multiple-offer scenarios that push the final sale price above the initial asking price. Home buyers should have a firm budget in mind before entering the market, in case they encounter such a bidding war.

A Modest Home Price Increase Over the Past Year

According to the C.A.R. report mentioned earlier, the median sale price across Alameda County rose to $1,240,000 last month. That was about 2.2% higher than a year earlier.

Some housing market analysts expect home prices in the Alameda area and across California to rise steadily in 2024 as well. In fact, we might see bigger year-over-year gains next year than what we saw during 2023.

Home prices in the area leveled off during the first part of 2023, before rising through the second half of that year. But in 2024, the Alameda County real estate market could experience a more sustained rise in house values, with prices inching upward from month to month.

Home buyers in the area should pay close attention to this trend as well, since it affects everything from affordability to the size of their monthly payments.

Housing Market Inventory Remains Tight

Home buyers in Alameda County, California should also know that housing market inventory levels remain tight in late 2023. In fact, supply levels have declined slightly over the past year, meaning there are fewer homes on the market these days.

As of last month, Alameda County had a 1.6-month supply of homes for sale. That was one of the lowest levels in the state of California, and it’s partly why home buyers often find themselves offering more than the asking price.

The bottom line to all of this is that there are more buyers in the real estate market than there are properties to go around. In 2024, this imbalance will continue to put upward pressure on home prices while making things a bit more challenging for local buyers.

Homes Are Selling More Quickly in Alameda

Given all of the trends outlined above, it should come as no surprise that homes tend to sell quickly in Alameda County. The median number of days on market for this real estate market has declined a bit over the past year, indicating a faster pace of sales.

The “days on market” metric measures the average or median length of time between the initial listing of a home and the signing of the contract. A low median DOM number indicates a fast-paced real estate market where homes tend to sell quickly, while a higher number indicates a more sluggish real estate scene.

In Alameda County, the median DOM dropped to just 13 days in October 2023, down from 17 days a year earlier. In short, this means the local real estate market has accelerated over the past year with faster sales.

A Competitive Real Estate Market in 2024

Here are the most important takeaways from this report:

• Alameda County is currently one of the most competitive real estate markets in California, and this trend could continue into 2024 as well.
• As of November 2023, most of the homes listed for sale within Alameda County were selling for more than the original asking price.
• Overall, home prices in this real estate market have risen modestly over the past year. This trend could continue in 2024, so buyers should keep a close watch.
• Low inventory levels within the housing market will continue to challenge house hunters next year, as they’ve done over the past couple of years.
• The Alameda County real estate market has a relatively fast pace of home sales due to strong competition from buyers.

In 2024, home buyers in cities like Oakland, Fremont, Hayward and Livermore can expect to encounter a high level of competition and a fast-paced real estate market.