Bay Area Price Reduction Heat Maps

Take a look at some new heat maps released by Altos Research. They show varying amounts of price reductions. Brightest red is 50% price reductions the darkest is 10%. The darker the red the less price reductions and in essence the stronger the market in that zip code. Looks like Alameda and Contra Costa counties most affluent neighborhoods are still very strong for spring sales.

It is interesting to note that it seems as you move away from the heart of affluent neighborhoods, the reductions get worse. This is the pulling in effect of a slowing market. Basically, buyer’s would rather live closer to where they work (which is most likely an urban center like San Francisco). If they can afford to live in Albany then why live in Antioch? As the market slows more inventory becomes available closer to the urban centers and this weakens outlying areas.

As we have noted with many of our clients each home is individual and it is a must that it be evaluated individually for sale. In other words, seeing your property on a heat map is not enough to declare that it is liquid or illiquid.