Danville, California Housing Market Forecast and Outlook, 2016 – 2017

Home prices within the Danville, California housing market have risen steadily over the last year or so. But they could level off a bit through the second half of 2016 and into 2017. That’s the general consensus among economists who track the real estate market, including those at Zillow.

Here’s an updated look at current housing market trends in Danville, along with some third-party forecasts for 2017.

CoreLogic: Home Prices Still Rising in Contra Costa County

At the end of June, the financial data firm CoreLogic published a home price report for the nine-county Bay Area. According to that report, median sale prices in eight of the nine Bay Area counties rose in May 2016, compared to the year before. Home prices increased on both a month-to-month (April to May) and year-over-year basis, in every county except San Francisco. Danville also so a rise in house values during this period.

A ‘Softer’ Forecast for Danville Housing Market?

According to the economists and housing analysts at Zillow, the median home value in Danville, California was $1,168,500 as of July 2016. That was an increase of 7.4% compared to the same time last year. So it appears that demand is still strong in the Danville, housing market.

Looking forward, however, Zillow’s forecast calls for a more modest 1.1% price increase for the Danville housing market. That was their outlook for the next 12 months or so, as of July 2016.

This mirrors the broader cooling trend we are seeing in other parts of the Bay Area, and elsewhere across the country. The general consensus and forecast appears to be that home prices will continue rising in 2017, but at a slower pace than what we’ve seen over the last year.

The San Francisco Chronicle, citing CoreLogic’s data, recently reported the following:

“Year-over-year, [home] sales fell in the higher-cost counties (Alameda, Marin, Santa Clara, San Francisco and San Mateo) and rose in the lower-cost ones (Solano, Napa and Sonoma). They were basically flat in Contra Costa.”

As a a result of these trends, CoreLogic research analyst Andrew Lepage says that many people are being priced out of the more expensive markets and having to move further east or north to purchase a home.

So what’s the 2016 – 2017 forecast for the Danville, California housing market? According to several expert sources, it appears we could see some price cooling in the near future.

And maybe that’s a good thing. The entire Bay Area real estate market has been a little overheated recently. A gradual cool-down could lead to more sustainable home-price growth and prevent a bubble scenario from developing. And we can probably all agree that those are good things.

Disclaimers: This article includes forward-looking statements (forecasts and predictions) regarding the Danville, CA real estate market. Such statements were provided by third-party sources not associated with our company. This material has been provided for informational purposes only.