Bay Area home prices are starting to make their descent following a moderate summer of home price appreciation, according to a Pacific Union market report for August.
ICNY 2020
- Home prices began to slow in Silicon Valley and the Mid-Peninsula, while Lake Tahoe, Truckee and Sonoma Valley saw massive gains in home price appreciation.
- Sonoma Valley's median sales price increased 22 percent in August over last year.
- Silicon Valley home sellers may be passed the days of higher returns, as the sales price percentage of the original price tag has remained consistently below 100 percent since April.
Bay Area home prices are starting to make their descent following a moderate summer of home price appreciation, according to a Pacific Union market report for August.
While some of the area’s most expensive areas like Silicon Valley and Mid-Peninsula saw prices move downward, second-home communities like Truckee, Lake Tahoe and Sonoma Valley saw gains of more than 20 percent.
The Pacific Union report breaks down local trends by area, including the median sales price, months supply, average days on market and sales price as a percentage of the original listing price.
Contra Costa County
The median sales price in Contra Costa County is still around the same level as it has been, but on a monthly basis trends have dipped slightly to $1.16 million. The sales price as a percentage of the original price rose month-over-month from 98.9 percent to 99 percent, showing that listing prices are pretty on-point for buyers.
The average days on market fell from 25 days to 23 days month-over-month in August, showing that the market isn’t slowing down everywhere in the Bay. The months supply in the area was reported at 1.6, a slight dip from 1.7 months in July.
East Bay
Compared to last year, the median sales price in East Bay this August rose 13 percent to $957,500 from the same time the previous year. However, median sales prices fell month-over-month from $975,000.
Months supply here is small, at just 0.6 months, representing a monthly dip from one month in July.
The average days on market was 19 in August, which was unchanged from the previous month but slightly lower than August 2015, when the average days on market was 22. The sales price as a percentage of the original price was 112 percent, a 0.3 percent dip from the previous month. Compared with August 2015, the percentage dipped 0.7 percent.
Marin County
Marin County had a reported median sales price of $1,187,500 in August, which was nearly identical to the previous month. Trends remained fairly stable for the months supply of inventory, which was at 1.8 months. In August 2015, months supply was reported at 1.6 months.
The average days on market hasn’t budged much, either, reported at 47 days compared to 46 the previous month. Last August, the average days on market was slightly higher, at 51 days.
The sales price as a percentage of the original listing price was 96.4 percent, down from 98.2 percent in July and 97.8 percent in August 2015.
Silicon Valley
The hot Silicon Valley housing market cooled off in August, with a slight monthly slowdown in median sales price and a 9 percent annual dip to $2.5 million. The average days on market jumped significantly month-over-month and year-over year, from 26 days in July and 23 days in August 2015 to 44 days in August 2016.
Sales price as a percentage of the original price was 96.6 percent in August, compared with 104 percent a year prior. The peak for Silicon Valley was in October 2015, when the sales price was 104.7 percent of the original price tag.
Sonoma Valley
Sonoma Valley saw massive gains in median sales price on both an annual and monthly basis, bringing the median sales price to $779,500 in August. The median sales price in August 2016 was the highest reported value in the past 12 months.
Despite these high sales prices, the percentage of original price is 92.5 percent — a dip from 95.1 percent from the previous month. Sales price as a percentage of original price dipped annually from 98.8 percent.
While days on market increased from 55 to 79 month-over-month in August, months supply of inventory decreased from 3.8 months to 1.9. A year ago in Sonoma Valley, months supply was 2.1 months.
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