Real Estate Roundup: Bay Area Homes Are Selling Faster Than Anywhere Else

Here’s a look at recent news of interest to homebuyers, home sellers, and the home-curious.

SAN FRANCISCO, SAN JOSE ARE THE NATION’S QUICKEST-PACED HOUSING MARKETS
The Bay Area’s well-documented inventory crunch is ensuring that serious homebuyers waste little time making deals this fall, with the San Francisco and San Jose metro area housing markets moving at the fastest pace in the nation.

That’s according to inventory data from the National Association of Realtors, which says that U.S. homes sold in an average of 79 days in October. At the end of the month, there were 2.02 million existing homes for sale, down 4.3 percent on an annual basis.

Bay Area homes are selling more than twice as fast as they do nationwide — 35 days in San Francisco and 37 days in San Jose. And in certain local submarkets, the pace of sales is even quicker. MLS data from Pacific Union’s October Real Estate Report shows that single-family homes in our East Bay region sold in an average of 17 days.

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BAY AREA HOME SALES DOWN BY DOUBLE-DIGIT PERCENTAGE POINTS IN 2016
Home sales have decreased across the Bay Area so far this year, particularly at the lowest end of the market, and more cooling appears to be in store for next year.

Citing data from PropertyRadar, The Mercury News reports that home sales across the region dropped by 10.3 percent from January to September of this year. San Francisco saw the largest declines, at 13 percent, while sales sunk by 11.3 percent in Alameda County and 10.1 percent in Santa Clara County.

Along with constrained inventory, fewer distressed properties on the market are contributing to cooling sales. Distressed sales in the Bay Area dropped by 35.7 percent in the first nine months of the year. The shortage of distressed properties, which typically fall below the $500,000 price point, is further eroding affordability across the region, which could translate to another year of sluggish sales in 2017.

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ONE-THIRD OF HOME SHOPPERS SEEK FORMAL OFFICE SPACES
Here’s another factor to consider when staging a property: A home-office space will appeal to a significant portion of potential buyers and likely increase its price.

A recent report from John Burns Real Estate Consulting documents the rise of telecommuting and how it affects demand for home offices. The company says that 39 percent of new home shoppers work from their houses at least one day per week and that almost one-quarter of Gen Xers work out of their homes at least three days per week.

JBREC’s survey found that one-third of buyers want a formal home office, with younger buyers more likely to prefer this amenity. As many homebuyers born in the 1970s and 1980s have young families, a space with a door helps them better concentrate and participate in conference calls. The majority of respondents to the poll indicated they would pay a premium for a home with a dedicated work space.

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FEWER AMERICANS MOVING THAN EVER BEFORE
The number of Americans who moved their residence has dropped to an all-time low this year, although quite a few Californians packed their bags for the Lone Star State.

RIS Media reports that just 11.2 percent of the population moved domestically this year, even with a solid housing market and economy. Consistent with other reports, the Golden State’s expensive real estate market and high cost of living are pushing some residents to cheaper places; this year, more than 65,000 Californians moved to Texas.

Other residents appear to be fleeing high-cost urban counties for the suburbs, particularly in Southern California. In 2016, almost 40,000 people have left Los Angeles County and migrated to neighboring Orange and San Bernardino counties.

(Photo: Flickr/Bunches and Bits {Karina})

Article and images sourced from http://blog.pacificunion.com/real-estate-roundup-bay-area-homes-are-selling-faster-than-anywhere-else/

Pacific Union’s October 2016 Real Estate Update

The first month of the fourth quarter was a typically busy time for Bay Area real estate markets, with the months’ supply of inventory (MSI) declining or holding steady from September across the majority of Pacific Union’s regions. The exceptions were the Mid-Peninsula and Napa County, where the number of single-family homes for sale increased slightly, and the Lake Tahoe/Truckee region, where more sellers listed their properties in advance of the upcoming ski season.

Click on the image accompanying each of our regions below for an expanded look at local real estate activity in October.

MARIN COUNTY

The number of homes for sale in Marin County declined on both a monthly and yearly basis, ending October with a 1.4-month supply of inventory. At $1,249,000, the median sales price wasn’t far off from the preceding eight months.
Homes sold in an average of 49 days, one day longer than in August and September, and buyers paid 98.2 percent of original prices.
Defining Marin County: Our real estate markets in Marin County include the cities of Belvedere, Corte Madera, Fairfax, Greenbrae, Kentfield, Larkspur, Mill Valley, Novato, Ross, San Anselmo, San Rafael, Sausalito, and Tiburon. Sales data in the adjoining chart includes single-family homes in these communities.

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SAN FRANCISCO – SINGLE-FAMILY HOMES

The median sales price for a single-family home in San Francisco hit a yearly high in October, closing out the month at $1,410,000. Sellers took home 103.6 percent of original prices, a bit less than in September.
At an average 28 days on the market, homes sold almost two weeks faster than they did in the preceding month, while the MSI fell to 1.7.

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SAN FRANCISCO – CONDOMINIUMS

The median sales price for a San Francisco condominium has stabilized over the past year and finished October at $1,164,000. Properties have been commanding premiums for the past year and that trend continued in September, with condominiums selling for 102.2 percent of asking prices.
Month over month, the MSI inched down to 2.7 but was up from October 2015. The pace of sales quickened for the second month in a row, with units taking 37 days to leave the market.

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SILICON VALLEY

Although Silicon Valley is still the Bay Area’s most expensive real estate market, the median price relaxed on both a monthly and annual basis to $2,610,000. The MSI declined to 1.6, down on a monthly and yearly basis.
Homes sold in an average of 39 days, more than double the amount of time from one year earlier. Buyers paid 96.9 percent of original prices, the seventh consecutive month that homes have sold for less than 100 percent.
Defining Silicon Valley: Our real estate markets in the Silicon Valley region include the cities and towns of Atherton, Los Altos (excluding county area), Los Altos Hills, Menlo Park (excluding east of U.S. 101), Palo Alto, Portola Valley, and Woodside. Sales data in the adjoining chart includes all single-family homes in these communities.
Mid-Peninsula Subregion
With a 1.4-month supply of inventory in October, the number of homes for sale in our Mid-Peninsula subregion was consistent with levels recorded for most of 2016. Although the pace of sales has been slowing somewhat, homes still found a buyer in exactly four weeks.
The median sales price increased modestly from September to $1,662,500. Buyers paid 96.1 percent of asking prices, the first month in at least a year with no average premium.
Defining the Mid-Peninsula: Our real estate markets in the Mid-Peninsula subregion include the cities of Burlingame (excluding Ingold Millsdale Industrial Center), Hillsborough, and San Mateo (excluding the North Shoreview/Dore Cavanaugh area). Sales data in the adjoining chart includes all single-family homes in these communities.


Article and images sourced from http://blog.pacificunion.com/pacific-unions-october-2016-real-estate-update/

Pacific Union August 2016 Real Estate Update

Although annual home price appreciation continued to moderate throughout much of the Bay Area as summer drew to a close, two of our second-home markets - Sonoma Valley and Lake Tahoe/Truckee - enjoyed gains of more than 20 percent. Our two most expensive markets, Silicon Valley and the Mid-Peninsula, saw prices move in the opposite direction, with the median sales price down from August 2015. Click on the image accompanying each of our regions below for an expanded look at local real estate activity in August.

SAN FRANCISCO - SINGLE-FAMILY HOMES   The median sales price for a single-family home in San Francisco dropped to $1,281,500 in August, the lowest since January. Homes took an average of 34 days to find a buyer, a slight increase from the two preceding months. The MSI ended August at 1.6, with sellers netting 107.6 percent of asking prices.     SAN FRANCISCO - CONDOMINIUMS   Condominium sales in San Francisco slowed as summer wound down, with homes selling in an average of 50 days, the longest time on the market in the past year. The median sales price was $1,099,118, virtually unchanged from July. Even as the pace of sales slowed, supply conditions tightened, with the MSI dropping to 1.8. Sellers took home an average of 100.7 percent of original prices, the smallest premiums recorded over the past 12 months.     MARIN COUNTY   August's median sales price in Marin County was nearly unchanged from July at $1,187,500. The MSI ended the month at 1.8, also almost identical to July. Homes sold in an average of 47 days, and buyers paid 96.4 percent of original prices.     Defining Marin County: Our real estate markets in Marin County include the cities of Belvedere, Corte Madera, Fairfax, Greenbrae, Kentfield, Larkspur, Mill Valley, Novato, Ross, San Anselmo, San Rafael, Sausalito, and Tiburon. Sales statistics in the chart above include single-family homes in these communities.     SILICON VALLEY

 

Summer's end also found the pace of sales slowing in our Silicon Valley region, with homes taking an average of 44 days to leave the market. The MSI stood at 1.9, down slightly from July. At $2,500,000, the median sales price declined 9 percent from August 2015, tying its one-year low. Buyers also enjoyed the biggest discounts of 2016, with homes selling for an average of 96.6 percent of original prices.     Defining Silicon Valley: Our real estate markets in the Silicon Valley region include the cities and towns of Atherton, Los Altos (excluding county area), Los Altos Hills, Menlo Park (excluding east of U.S. 101), Palo Alto, Portola Valley, and Woodside. Sales statistics in the chart above include all single-family homes in these communities.   MID-PENINSULA SUBREGION   The median sales price in our Mid-Peninsula subregion was down on both a monthly and yearly basis, closing out August at $1,475,000. The pace of sales remained brisk, with homes finding a buyer in an average of 22 days. The MSI dipped slightly from July to 1.3, and sellers received 101.1 percent of original prices.     Defining the Mid-Peninsula: Our real estate markets in the Mid-Peninsula subregion include the cities of Burlingame (excluding Ingold Millsdale Industrial Center), Hillsborough, and San Mateo (excluding the North Shoreview/Dore Cavanaugh area). Sales statistics in the chart above include all single-family homes in these communities. Article and images sourced from http://blog.pacificunion.com/pacific-unions-august-2016-real-estate-update/

Pacific Union’s July 2016 Real Estate Update

Normalizing annual home price growth was evident across parts of the Bay Area in July, with the median single-family home price in Contra Costa County, the East Bay, San Francisco, Silicon Valley, and Sonoma County rising by single-digit percentage points from one year earlier. Only single-family home prices in the Lake Tahoe region and Marin County posted double-digit percent annual appreciation. Price growth was flat in Napa County, while prices fell year over year in our Mid-Peninsula and Sonoma Valley regions.

Click on the chart accompanying each of our regions below for an expanded look at local real estate activity in July.

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MARIN COUNTY

The pace of sales in Marin County slowed in July, with homes taking 46 days to sell, more than a week longer than in the previous month. The median sales price softened slightly from June to $1,186,000 but was up by 12 percent from July 2015.

The MSI closed July at 1.6, and buyers paid 98.3 percent of original prices.

Defining Marin County: Our real estate markets in Marin County include the cities of Belvedere, Corte Madera, Fairfax, Greenbrae, Kentfield, Larkspur, Mill Valley, Novato, Ross, San Anselmo, San Rafael, Sausalito, and Tiburon. Sales data in the adjoining chart includes single-family homes in these communities.

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SAN FRANCISCO – SINGLE-FAMILY HOMES

The median single-family home price in San Francisco ended July at $1,370,000, in the same general range as it has been since February. Homes continue to fetch premiums, selling for 105.9 percent of original prices, although overbids are substantially smaller than they were last summer.

Homes sold in an average of 32 days, nearly identical to June’s pace of sales. The MSI finished July at 1.8, with a few more homes on the market than in the previous month.

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SAN FRANCISCO – CONDOMINIUMS

San Francisco’s median condominium price cooled slightly on both an annual and monthly basis, dropping to $1,080,000 in July. Buyers paid 102.7 percent of original prices, a bit less of a premium than they did last summer.

Both the average days on market and the MSI remained unchanged from June, at 36 and 2.1, respectively.

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SILICON VALLEY

The median sales price in our Silicon Valley region has been gradually dropping since April, but at $2.8 million it remains the most expensive region in which Pacific Union operates. Still, buyers netted slight discounts for the fourth consecutive month, with the average home selling for 98.8 percent of original price.

The MSI rose to 2.0, its highest level since March, and homes sold in an average of 26 days.

Defining Silicon Valley: Our real estate markets in the Silicon Valley region include the cities and towns of Atherton, Los Altos (excluding county area), Los Altos Hills, Menlo Park (excluding east ofU.S. 101), Palo Alto, Portola Valley, and Woodside. Sales data in the adjoining chart includes all single-family homes in these communities.

Mid-Peninsula Subregion

After dropping significantly in June, the median sales price in our Mid-Peninsula subregion rebounded in July to $1,640,000, although it was down on an annual basis. Sellers received 103.7 percent of asking prices, not dramatically different from the previous three months.

Homes took an average of 19 days to find a buyer — identical to June — while the MSI rose modestly to 1.4.

Defining the Mid-Peninsula: Our real estate markets in the Mid-Peninsula subregion include the cities of Burlingame (excluding Ingold Millsdale Industrial Center), Hillsborough, and San Mateo (excluding the North Shoreview/Dore Cavanaugh area). Sales data in the adjoining chart includes all single-family homes in these communities.

Article and images sourced from http://blog.pacificunion.com/pacific-unions-july-2016-real-estate-update/

Pacific Union’s January 2016 Real Estate Update

Bay Area home shoppers who ventured out in the first month of 2016 were in luck, as the months’ supply of inventory (MSI) of homes for sale expanded in every one of our regions. However, all of our markets still favor sellers, with the exception of Lake Tahoe/Truckee, where plenty of properties await buyers who want to take advantage of the copious snowfall the region is enjoying.

SAN FRANCISCO – SINGLE-FAMILY HOMES

The pace of sales for a single-family home in San Francisco slowed as the year began, with properties selling in an average of 43 days. After dipping below 1.0 in the final month of 2015, the MSI expanded to 1.9.

The median sales price eased just a bit from December, falling to $1,167,500, but prices haven’t been under $1 million in a year. The average home fetched 104.4 percent of its asking price, mirroring what we saw last January.

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SAN FRANCISCO – CONDOMINIUMS

The median sales price for a San Francisco condominium inched up in January to $1,124,500. As with single-family homes, prices have not dipped below $1 million in a year. Homes sold for 101.8 percent of original prices, the smallest premiums recorded in more than a year.

The pace of sales has been progressively slowing since September, and the average condominium took 47 days to find a buyer. The MSI increased to 2.4, nearly identical to levels recorded in January 2015.

Article and images sourced from http://blog.pacificunion.com/pacific-unions-january-2016-real-estate-update/