Brentwood Real Estate Insights – September 2024
Welcome to the Monthly Real Estate Insights for Brentwood, CA, for September 2024. This market update focuses on single-family residences, providing key data and trends to help home buyers, sellers, and real estate professionals make informed decisions. In a dynamic housing market, it is crucial to stay updated on changes in prices, buyer and seller leverage, and how mortgage rates impact market activity.
This report will highlight important shifts over the last month and offer projections for the next 30 days. With the market action score reflecting the relationship between buyers and sellers, this update is essential for understanding how competitive the Brentwood real estate market is right now.
TOP Takeaways
Market Index Score: 50 (Indicating a market close to equilibrium, where neither buyers nor sellers hold a strong advantage)
Median List Price: $912,000 (An increase from $898,500 last month, showing continued strength in home prices)
30-Year Fixed Mortgage Rate: 6.2% (A significant factor affecting affordability and buyer activity)
Key Trends and Analysis
Market Index Score Explained
The Market Index Score is a key measure of market conditions, ranging from 0 to 100. A higher score favors sellers, while a lower score favors buyers. A score of 50 represents a balanced market, where neither buyers nor sellers hold a significant advantage.
Current Market Index Score: 50
Previous Month’s Score: 51
The slight drop from 51 to 50 suggests that the Brentwood market is reaching equilibrium. This balance reflects that buyers are gaining more leverage compared to previous months, but sellers still have opportunities for strong offers. The score indicates that competition between buyers and sellers is evening out, and the market could shift slightly in favor of either party in the coming months.
Analysis of Current Market Data
Median List Price: The median list price has increased to $912,000, up from $898,500 last month. This rise in pricing signals continued confidence from sellers. While the market is nearing balance, sellers are still listing homes at competitive prices, particularly in higher-end areas of Brentwood.
Median Price of New Listings: New listings are priced higher this month, with a median price of $1,049,999, compared to $895,000 last month. This significant jump suggests that more premium homes are entering the market, and sellers are targeting a specific buyer segment willing to pay higher prices.
Average Days on Market: Homes are staying on the market for an average of 57 days, slightly down from 59 days last month. This minor decrease suggests that while homes are taking time to sell, well-priced properties are still moving relatively quickly.
Median Days on Market: The median days on market increased from 28 to 35 days. This means that while some homes are selling fast, others are staying on the market longer, potentially due to higher listing prices or buyer hesitation stemming from affordability concerns.
Median Rent: The median rent has risen to $3,373, up from $3,248 last month, indicating continued demand for rental properties. This increase may be due to more buyers choosing to rent as mortgage rates remain high, limiting affordability for some potential homeowners.
What This Means for Buyers and Sellers
For Sellers: The Brentwood real estate market is nearing equilibrium, but sellers still hold some leverage, particularly for well-maintained, competitively priced homes. The slight increase in median list prices and the high median price of new listings suggest that sellers are optimistic about buyer demand, especially for premium properties. However, as the market becomes more balanced, sellers should be prepared for longer listing periods and should consider pricing homes strategically to attract serious buyers quickly.
For Buyers: Buyers are gaining more leverage in the Brentwood market as the balance shifts slightly in their favor. With homes staying on the market for longer periods and the overall Market Index score moving closer to equilibrium, buyers can expect more negotiating power, particularly on homes that have been listed for extended periods. However, the 6.2% mortgage rate continues to impact affordability, meaning buyers should carefully consider their budget and financing options. Well-priced homes in desirable areas may still attract multiple offers, but buyers have a greater chance of negotiating favorable terms, especially if homes remain unsold for longer than expected.
Comparison to Previous Month
Several key changes stand out when comparing August 2024 to September 2024:
Median List Price: The median list price increased from $898,500 to $912,000. This rise shows continued strength in the market, though it may also reflect sellers testing higher prices as inventory grows.
Median Price of New Listings: New listings are priced significantly higher this month, with a median price of $1,049,999, up from $895,000 last month. This indicates that more high-end properties are entering the market, which could skew the overall median price upward.
Average Days on Market: Homes are staying on the market for an average of 57 days, a slight improvement from 59 days last month. This suggests that while the market remains competitive, homes are still selling relatively quickly when priced appropriately.
Median Days on Market: The median days on market have risen from 28 to 35 days, signaling that some homes are taking longer to sell, likely due to higher pricing or more cautious buyers.
Median Rent: Rental prices have increased slightly from $3,248 to $3,373, reflecting continued demand for rental properties. This may indicate that some buyers are opting to rent instead of purchase, given the high mortgage rates.
These changes indicate a market that is moving toward balance but still favors sellers in certain price ranges and neighborhoods. The rise in new listing prices suggests that sellers are testing the market, particularly with higher-end properties, while the increase in days on market reflects buyer caution in the face of rising mortgage rates.
Future Outlook
Buyer and Seller Scores
In the next 30 days, the Brentwood market is expected to remain close to equilibrium, with the possibility of slight fluctuations in favor of either buyers or sellers. The current Market Index score of 50 indicates a balanced market, but if inventory continues to grow or if buyer demand weakens due to affordability concerns, the market could shift slightly in favor of buyers. Conversely, if interest rates decrease or demand for premium homes remains strong, sellers may regain a slight advantage.
Interest Rates
The 30-year fixed mortgage rate remains at 6.2%, a critical factor influencing buyer behavior. High interest rates limit affordability, making it harder for some buyers to qualify for mortgages or afford higher-priced homes. If rates rise further, buyer demand could slow, leading to longer days on market and potentially lower home prices. On the other hand, if rates decrease, we could see renewed buyer activity, particularly among first-time buyers and those looking to upgrade their homes.
Other Factors
Seasonal Trends: As we move into the fall season, real estate activity typically slows down. Both buyers and sellers may be more motivated to close deals before the end of the year, leading to potential price adjustments and more favorable terms for buyers. Sellers who are eager to move their properties before the holiday season may be willing to negotiate more aggressively.
Economic Conditions: Broader economic factors such as inflation, employment rates, and consumer confidence will continue to influence the Brentwood real estate market. If economic uncertainty increases, buyers may become more cautious, leading to slower sales and potentially lower home prices.
Interesting Fact
An interesting trend in Brentwood’s housing market that hasn’t been widely discussed is the significant jump in the median price of new listings, from $895,000 to $1,049,999 in just one month. This increase suggests that more high-end homes are entering the market, or sellers are feeling confident enough to list their homes at higher prices. However, in a market approaching balance, this strategy could be risky, especially if buyers are more cautious due to high mortgage rates.
The Brentwood real estate market continues to offer opportunities and challenges for both buyers and sellers. Staying informed and working with a trusted Real Estate Professional from Realty One Elite can significantly enhance your real estate journey. Whether you're looking to buy or sell, we're here to assist with your needs and ensure you navigate the market with confidence.
For any questions or guidance on your real estate ventures in Brentwood, don't hesitate to reach out. Let's make your real estate aspirations a reality this February 2024.
Additional Resources
For further insights into Brentwood's real estate market or for personalized advice, visit our insights page at www.findebhomes.com. Stay informed about mortgage trends with the latest Freddie Mac 30-year rate update.
