California home prices down 8.7% since May

Green Escrow | Real Estate News

The median single-family home price in California dropped to $821,680 in September which is a decline of 2.1 percent from August and down 8.7 percent from the peak in May. Of course, these numbers are relative and this decline is still up 42 percent from February 2020.

In the Bay Area, the median in September is $1.26 million, down 0.5% from August and a whopping 16.5 percent from May, but still up 38 percent from February 2020.

As for the future, the California Association of Realtors predicts a drop of 9 percent in the median price statewide for all of 2023.

Prices drop, mortgage rates up

Green Escrow Services | Federal Reserve Board

Home prices in August were down 6 percent from June, the biggest drop in nearly ten years. Meanwhile, the number of homes sold declined for the 7th straight month.

Mortgage rates continue to rise as the Federal Reserve increases interest rates at an almost unprecedented rate in an effort to fight inflation.

Analysts worry that such rapid increases could push the country into a recession which would further deflate home prices.

A new trend? Sales and prices declining

Market News

The National Association of Realtors recent release of April’s housing data shows that nationwide the supply of houses for sale increased by 1.4 percent over March and 5.8 percent over March 2018. However, even with more inventory sales declined 0.4 percent from March, marking the 14th consecutive month of declining sales.

Several large markets saw a decline in prices as well, lead by Seattle where values dropped by 4.5 percent over the previous year.

Other top markets which have seen a significant cooling since February include San Jose, San Francisco, Los Angeles, and Portland. Meanwhile, the overall housing supply in these areas is up 40.2 percent year over year.

Inflation, Wages & Prices

Green Escrow Services | American economy

The current state of the residential real estate market is marked by three factors: inflation, wages, and the price of homes. Currently inflation is rising at 2.9% (U.S. Labor Department); wage growth is up 3.2% (Federal Reserve Bank); and home prices are up 6.9% (S&P CoreLogic Case – Shiller). So while inflation and wages are increasing at approximately the same right, home prices are rising over two times as fast. This means, of course, that prices are continually pushing homes out of reach or more and more potential homebuyers.

Ideally, supply and demand will come more into balance. While homes will still be out of reach for many, hopefully wage growth and home prices will run closer to parallel. Analysts will also continue to be concerned about inflation which will effect the amount of income available for home purchases.

Surprise! Home Prices Set a New Record – Again

Green Escrow | Real Estate News

Call it the law of supply and demand – or, in this case, the law of extremely limited supply and excessive demand – but, once again, prices in the nine-county Bay Area have risen to extraordinary new levels.

Santa Clara County saw the largest gains with home prices increasing by nearly 25 percent(!) over 2017 with a median price of $1.308 million. Alameda County homes rose 11.8 percent with a median price of $900,000 and Contra Costa County rose 10 percent to $649,000.

Interestingly, the number of homes for sale this April actually increased by 7 percent over a year ago. Nevertheless, the total home sales in April were nearly 16 percent below the historical average..

Bay Area Real Estate: Same Old, Same Old

Green Escrow | Real Estate

The latest home sales report from the California Association of Realtors should be strikingly familiar to anyone following Bay Area real estate over the last few years: prices up, inventory down.

To be specific, the median price for a single-family home in the nine-county Bay Area was $856,200 in August – an annual increase of 10.2 percent.

Eight of the nine Bay Area counties saw home prices increase from August, 2016. Only Solano County had a flat appreciation.

Inventory from August 2016 was down in all nine counties.

Bay Area Home Price Gains Continue

Market News

According to the California Association of Realtors, home prices in the nine county Bay Area experienced a 12.2 percent year-over-year increase with a median price at $784,470 as of the end of February. The same Bay Area counties currently has a 3.0 month supply of inventory, an increase over January but down from February 2016.

Statewide, the number of active listings declined by 13.9 percent in February and continues a downward trend for the last 20 months or so.

Analysts predict the inventory level will continue to decline although the recent Federal Reserve statement that rates will probably rise two more times in 2017 may spur a short-term surge of activity as buyers and sellers try to beat the impending mortgage rate increases.

Bay Area Home Prices Keep Increasing

Real Estate Growth

The California Association of Realtors most recent monthly home sales and price report shows that the median sales price for a single-family home in the nine-county Bay Area was $775,820 in December, an increase of 6.3 percent year over year.

On the other hand, Bay Area sales volume decreased by 12.8 percent on an annual basis.

Analysts agree that 2017 will be challenging for home sales in the Bay Area given the ongoing low inventory, rising interest rates, high prices and continuing uncertainties over the upcoming political climate.

Home Sales Rise in May

Market News

Buy, buy, buy. Up, up up.

The National Association of Realtors reports that sales of existing home rose by 5.1 percent in May to a seasonally adjusted annual rate of 5.35 million, marking the third consecutive month of the sales rate’s exceeding five million homes on an annual basis, moving home-buying on a pace for the the best year since 2007.

Moreover, median home prices have risen 7.9 percent over the last 12 months to $228,700, about $1,700 less than the July 2006 peak.

Why? Analysts cite a stronger job market, decent rates, and the anticipation of prices going even higher.

First-time buyers accounted for 32 percent of April’s sales, up from 27 percent in 2014. Nevertheless, it is still far behind the historical average of 40 percent.

As for the rest of the year, experts will watch just how much higher prices will climb – which might price many out of the market – and the much-anticipated increase in interest rates.

Home Prices Increasing Just About Everywhere

Green Escrow | Real Estate News

It certainly won’t come as news to anyone in the Bay Area but according to the National Association of Realtors®’ latest quarterly housing report the number of metro areas seeing double-digit price appreciation doubled in the first quarter of this year compared to last quarter. Once again it’s strong demand in combination with tight inventory that continues to push up housing prices throughout the country

Of the 174 metro areas that NAR tracks 148 saw an increase in the median xisting single-family home price. Nationwide only 25 areas recorded lower median prices compared to last year, while 51 metros saw double-digit increases, certainly a steep rise from the 24 metro areas in the fourth quarter of 2014.

According to analysts, by the close of 2014 home prices had “mostly moderated to healthier, more sustainable levels of growth” but prices are sharply increasing again with the median existing single-family home price in the first quarter now at $205,200 nationwide, up 7.4 percent from the first quarter of 2014.

Meantime, inventory remains tight with the average supply during the first quarter at 4.6 months – down from 4.9 months in 2014.