Castro Valley, CA (PRWEB) September 16, 2014
After two years of skyrocketing home prices in the Bay Area, home buyers are glad to hear that the market appears to be leveling out. “In the past two years, the home price in Alameda County has increased by 50%, that kind of growth is just not sustainable,” said Castro Valley CA real estate agent Murline Monat.
Several factors contribute to the plateauing of prices, affordability being significant. “What’s the point of asking more for a home if no one can afford it? Eventually, there is a price that is just too much,” Ms. Monat explained. Part of affordability is the ability to gain financing; however, with the high criteria set by lenders to qualify, financing is becoming more difficult to obtain.
Additionally, more houses are coming onto the market. While inventory is still well below “normal,” sellers are not seeing nearly as many bidding wars. “There are still sufficient buyers, the increased inventory is bringing the market into balance,” explained Ms. Monat.
Finally, the number of absentee buyers – mostly investors and occasionally foreigners – is also down. Investment buyers tend to inflate prices because they have more access to cash and financing. However, when prices get too high, investors tend to back out of the market because all the bargains are gone. In July, the number of homes purchased by investors was at its lowest point since September 2012. “There are also not as many people looking to ‘stash their cash’ in American real estate,” noted Ms. Monat when asked about why the number of cash purchases in July was at its lowest since November 2008.
The cyclical nature of the real estate market means that nothing will stay the same for long. While many Bay Area realtors have to come to grips with this new pattern in home prices, most participants in the market are pleased to see some balance returning. For more information on Castro Valley homes for sale, please contact Murline Monat.
A long-time Bay Area resident, Murline brings a wealth of knowledge and experience to her realty career – including an M.S in Industrial Psychology, building her own home, and group facilitation. Her background makes her an excellent champion for her clients. By ensuring her clients are appropriately informed throughout the purchasing or selling process, coordinating all the parties involved, and negotiating the best deal, Murline’s reputation in the community and realty industry is impeccable.
Before becoming a realtor in 2009, Murline Monat spent her time analyzing sales trends for both large corporations and small businesses. The difference between retail sales trends and real estate trends are minimal now that she is able to support her clients in one of the most important lifestyle choices they will make. These decisions “bring great comfort and satisfaction to individuals and to families. I love being a part of that process.”
A Bay Area resident since the age of 5, Murline and her husband made Castro Valley their home because of its central location for both of their careers at the time. While a practical choice, the decision to live in Castro Valley has since been a happy one.
Empire Realty Associates, Inc.
Danville, CA 94526