Pending home sales declined across the state in September, but they tumbled in the Bay Area as the region’s super-tight home supply and climbing prices apparently proved a turnoff to some potential buyers.
Down 2.6 percent statewide from a year earlier, pending sales fell 10.5 percent in the Bay Area. They plunged 21.4 percent from October 2016 levels in Santa Clara County and 10.9 percent in San Mateo County.
That’s according to a study by the California Association of Realtors (C.A.R.), which said pending home sales now have fallen statewide for nine of the last 10 months on a year-over-year basis.
The “continued scarcity of inventory” and resultant rising prices “may squeeze the market heading into the close of the year,” the report said.
The study isn’t comprehensive. For one thing, C.A.R. doesn’t have pending sales data for Alameda and Contra Costa counties. Nonetheless, the report — which shows pending sales up 15.1 percent in San Francisco, an anomaly — adds to the continually evolving picture of the region’s affordability crisis.
Earlier this week, a study by the HSA.com mortgage information website reported this daunting factoid: A household income of $216,181 is needed to purchase a median-priced home in the San Jose metropolitan area.That is the steepest income requirement in the nation — more than double the $99,151 needed to buy in the New York City metro area.
The San Francisco metro area placed second among the nation’s 50 most populous housing markets. It takes a $171,330 household income to buy in San Francisco, according to the analysis, which assumes a 20 percent down payment on a 30-year fixed loan.
The San Jose metropolitan area also posted the nation’s steepest year-over-year decline in the number of homes for sale in October — falling by a steep 51.6 percent, according to a report issued last week by Redfin. With buyers fighting over few listings, the San Jose metro also posted the nation’s sharpest year-over-year rise in the median cost of a home: up 19.2 percent to $1,049,000.
Nationally, the home supply shrank for the 25th consecutive month, down 12.2 percent from October 2016, according to Redfin. The Bay Area, it seems, offers an extreme version of a national trend.