Sales of existing single-family detached homes dropped 25 percent in the Bay Area from second-quarter 2005 to second-quarter 2006, Prudential California Realty reported, while the inventory of active listings increased 34 percent.
The time on market for single-family detached homes increased from 27 days in second-quarter 2005 to 43 days in second-quarter 2005.
Median prices for single-family detached homes, meanwhile, grew from $741,657 in second-quarter 2005 to $789,914 in second-quarter 2006, a 7 percent gain.
The Bay Area region includes Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano and Sonoma counties.
The highest increases in median price occurred in an area comprising San Francisco’s north-central neighborhoods (which includes Hayes Valley, Lower Pacific Heights, Western Addition, Alamo Square and North Panhandle) where the median price of a single-family home increased by 63 percent from $920,500 to $1.5 million, according to the report.
Sales of existing single-family detached homes dropped 35 percent in Napa County in second-quarter 2006 compared to second-quarter 2005, and fell 32 percent in Sonoma County and 30 percent in Solano County.
Median prices of existing single-family detached homes increased 8 percent in Contra Costa County from second-quarter 2005 to second-quarter 2006, while rising 7 percent in San Mateo County and 6 percent in Santa Clara and Solano counties.
“Second-quarter activity shows a sustained decline in market activity, year-over-year, including slowing median price appreciation, however we do not expect median prices to drop precipitously in the near term,” said Sherry Chris, chief operating officer of Prudential California Realty, based in Pleasanton, Calif.
“Overall, the latest economic indicators are showing healthy consumer confidence, projected spending levels and income growth. Typically, these factors help mitigate softening in the housing market and work to keep median prices buoyant.”
According to the Prudential announcement, motivated sellers used “price reductions and concessions such as repairs, inspections and credits for closing costs to attract buyers’ interest,” and “competitively priced homes in turnkey condition, particularly those in premium school districts, often received multiple offers and sold at or slightly above list price.”
The data in the report was gathered from multiple listing services.
Prudential California Realty affiliates contributed to more than 29,000 real estate transactions and $14 billion in annual sales in 2005, according to the announcement.
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