Bay Area real estate: Region has tightest housing supply in state — and highest prices

Bay Area single-family home prices rose 7.9 percent in June from a year earlier, outpacing the 7.0 percent statewide price increase, but the difference in outright home prices was far greater, according to a new California Association of Realtors report.

Closing in on a million bucks, the Bay Area’s median price of $908,740 for single-family homes was much higher than the statewide median sale price of $555,150.

And look at some of the numbers from specific counties: The median price rose 12.6 percent year-over-year to $1,182,500 in Santa Clara County and 12.1 percent to $900,000 in Alameda County. It jumped 9.8 percent to $1,433,750  in San Mateo County, 8.8 percent to $1,469,000 in San Francisco and 5.6 percent to $660,000 in Contra Costa County.

All of this is driven by the combination of low housing supply and job growth. Worried that they won’t otherwise seal the deal, buyers are pushing sale prices higher and higher.

Broken down another way, the data show that the highest per-square-foot prices in the state were in the Bay Area. At the top of the list was San Francisco ($909 per square foot), followed by San Mateo County ($848) and Santa Clara County ($662).

And which California counties showed the sharpest drops in inventory? The report showed the top five were all in the Bay Area: San Mateo was No. 1, followed by Santa Clara, Alameda, San Francisco and Contra Costa counties.

“A lack of available homes for sale continues to be the largest single factor influencing California’s housing market,” said C.A.R. President Geoff McIntosh. “With active listings 13.5 percent lower than last June, we’ve now experienced a full two years in which active listings have fallen on a year-over-year basis and the lowest inventory level this year. Would-be sellers aren’t listing their homes as many of them would also face an inventory challenge if they were to turn around and buy another property.”

Tight inventory combined with buyers’ desperation, spurring sales on a year-over-year basis. The volume of sales was up 2.4 percent across California and 6.1 percent in the Bay Area.

Sales jumped 9.4 percent in Santa Clara and San Mateo counties; 8.2 percent in Contra Costa County; and 4.8 percent in Alameda County.

In San Francisco, the number of sales declined by 5.6 percent.

This chart shows year-over-year changes in price and sales for single-family homes.

32eb8 june merc Bay Area real estate: Region has tightest housing supply in state — and highest prices
A report analyzing sales data for June shows that Bay Area counties led the state in housing price increases. (Courtesy of California Association of Realtors) 

Article source: http://www.mercurynews.com/2017/07/18/bay-area-real-estate-region-has-tightest-housing-supply-in-state-and-highest-prices/

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