The local real estate market had spent much of 2018 in a latent state with high demand constrained by unusually tight supply. As is often the case, spring brought a wave of new inventory allowing the market to show kinetic energy in the form of increased deal flow.
With inventory up nearly 10% from previous month, 572 properties transacted in the most recent 30 day period. While the slight uptick in supply has released a bit of the tension in the market, year-over-year inventory continues to trend dramatically lower. This has pushed up nearly 16% year-over-year and a remarkable 2.7% in the last month alone.
The rate of home appreciation is far outpacing every measure of how to pay for such an asset; be that wage growth, inflation or otherwise. However, a sustained influx of jobs to the region continues to fuel demand; particularly for those importing home equity from more expensive regions like the San Francisco Bay Area.
The composition of these jobs is an ongoing story. While the names of the larger companies moving to the area are generally associated with technology, the actual jobs have been largely skewed toward manufacturing, distribution, and data storage. While these are solid and sustainable middle-class jobs, the region is now seeking to import the financial and creative brain trusts as well. These jobs tend to be higher wage which may in turn fuel premium real estate offerings as well as cultural offerings from restaurants and travel to culture and philanthropy.