Although sellers may not feel as warm, the Bay Area market normalizing to more realistic appreciation rates is considered positive news for housing health, according to Pacific Union’s July report on Bay Area real estate.
Consistent with trends reported in Pacific Union’s quarterly Bay Area market update, major regions of the Bay Area (Silicon Valley, San Francisco, East Bay) saw single-digit bursts in annual home price appreciation in July — with the exception of Marin County, where median price grew by double digits year-over-year (12 percent).
San Francisco single-family homes and condos and East Bay homes realized premiums above asking price last month, according to Pacific Union.
Out of these four markets, the East Bay saw the lowest average market time.
San Francisco
Despite the City by the Bay easing the tension for buyers, San Francisco remains far from affordable. The median single-family home price hit $1.37 million in July, while the median condominium price dipped to $1.08 million.
Buyers of single-family homes sold for 105.9 percent of asking price, Pacific Union says, with higher-than-asking offers dropping significantly from last year. For condos, buyers paid 102.7 percent of asking — a lower premium from last summer.
Single-family homes took 32 days to sell, which was virtually the same as the month prior. Condos lingered slightly longer, at an average of 36 days.
Months supply grew to 1.8 months for single-family homes and 2.1 months for condominiums.
East Bay
For the second time this year, the East Bay median sales price was seven figures, according to Pacific Union. In July, median price hit $1 million, with sellers across the region realizing premiums of 112.4 percent of asking price.
Homes in the East Bay moved off the market at an average 19 days — a similar trend as the past four months. Inventory increased 1 percent between June and July.
Marin County
Homes in Marin County took an average 46 days from list-to-close, the report says, extending a week from June’s pace.
In addition, sales price dropped month-over-month to hit $1.186 million. Despite the short-term drop, median sales price grew 12 percent year-over-year.
Buyers in Marin spent 98.3 percent of original asking price on average. Months supply was at just 1.6 months for the Marin County (North Bay) market, according to the report.
Silicon Valley
Tech-centric Silicon Valley remains the most expensive region Pacific Union operates in, with a median sales price of $2.8 million in July. Despite the high price, Silicon Valley has been steadily calming since April, according to the report.
Sellers in Silicon Valley did not see premiums above asking price in July as they did in February and March of this year and unlike other areas in the greater Bay Area market. Homes in Silicon Valley took an average 26 days to sell in July. Months supply rose slightly, to two months.
