Home sales are down both month-over-month and year-over-year across the Bay, according to new data released by CoreLogic. In fact, this was the area’s slowest September for real estate sales in three years.
In San Francisco, only 369 homes sold in the month of September, down 25.3 percent from August, 2017 sales. It’s also 32.5 percent fewer homes than sold in September of 2016.
First time buyers priced out
“With tight inventory and prices up significantly from last year, homes sales this September fell on a year-over-year basis in all but two of the San Francisco Bay Area’s nine counties – Marin and Santa Clara,” said Andrew LePage, research analyst with CoreLogic.
“The region-wide 7.5 percent year-over-year sales decline last month masks the severity of the decreases in the lower price ranges where many first-time buyers face a daunting challenge in one of the nation’s priciest housing markets.”
With the current median home prices up year-over-year across the Bay in September, competition for the few homes on the market is harder than ever for first-time buyers. Indeed, CoreLogic reports that absentee buyers bought 17.1 percent of all homes sold in September 2017. These absentee buyers are mainly investors, though second-home buyers figure in as well.
Fewer “affordable homes”
SFGate reported this weekend that the number of homes selling for less than $500,000 in the Bay Area this September dropped 28 percent year-over-year, while the number of homes selling for less than $300,000 dropped 41.5 percent, according to CoreLogic data.
Confirming and compounding these data, a Metrostudy report shows that only 12 percent of new homes in the Bay Area are priced under $500,000 “because prices in suburbs are rising.”
New median for 9/2017: $1.130M
In the gallery above are three homes with listing prices near CoreLogic’s reported median for city of San Francisco — $1.130 million for homes sold this September, up 10.2 percent from September, 2016. This figure is actually down, however, month-over-month. August homes posted a median sale price of $1.223,75 million.
The Glen Park three-bedroom, two-bathroom at 39 Melrose sold for $875,000 in 2014 and is now listed at $1.195 million. Redfin, which tracks user interest and activity on available properties predicts that this “hot home” has a 75 percent chance of selling in the next nine days and estimates the value closer to $1.5 million.
A Potrero Hill two-bedroom, two bathroom at 1023 Kansas was built in 1906, and property records show the house last selling for $185,000 in 1995. Today, it’s listed at $1.195 million, though Redfin comparables put its value at $1.14 million, much closer to the current median price in the city.
And finally, 2614 39th is a Sunset four-bedroom, three-bathroom that last sold for $660,000 in 2003. Now, the home is listed at $1.095 million, but Redfin comps suggest $1.325 million is a more accurate valuation.
Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert