Townhouse Update 2022-07-23


Preface to the East Bay Townhouse Market:

  • Please make sure to check out the SFR market update because (a) the Townhouse Market, for the most part, experiences similar headwinds and tailwinds as the detached single-family home (SFR) market, and (b) the detached SFR market has far more data than the Townhouse market.  Hence, it is critical to factor in the collective wisdom of the detached SFR market into our thinking of the Townhouse Market.
  • For some National Real Estate Indicators, click here.

  • For some snippets on the 2-to-4 Unit Properties market in the East Bay, click here. 


    Townhouse Market in the East Bay


  • Much like the inventory of detached single-family homes, the inventory of townhouses also continues to climb across the East Bay at a faster pace than that going pending.  At the current level of demand, we have almost 12 weeks of inventory on the market.  Despite this, prices of closed transactions (in nominal $) appear to be holding steady.  ((For what it’s worth, bear in mind that a flat price action in this high inflationary environment, economically speaking, translates to a lower ‘real’ price in constant $.))
  • Much like the Det. SFRs, townhouses are also staying on the market for 18 days on average in July before going pending – more than twice as long as they were back in March 2022.
  • This last chart is for the techie in you.  It shows the ‘current’ status of the active listing profile.  Note that the % of Expired, Withdrawn and Cancelled listings (blue bar) has steadily increased through May 2022.  June 2022 data is inconclusive since almost 60% of the listings that were active in June 2022 are still active at this time in July 2022, many of which could conceivably either expire, withdraw or cancel from the market over the next few weeks.  Also note that the % of June 2022 active listings that are now (at this time in July 2022) either pending or have sold stands at less than 29%, which is significantly lower when compared to the 45% of listings that were active in May 2022.