Homebuyer competition in the Bay Area remains as intense as ever this spring. Pacific Union Chief Economist Selma Hepp offers a detailed analysis of local housing market conditions in March.
Executive Summary:
- Sales of homes priced higher than $1 million increased by 30 percent in the Bay Area in the first quarter, with even stronger gains in the South Bay and Silicon Valley.
- Demand for homes priced above $3 million remains robust, jumping by 45 percent from last year’s first quarter.
- Inventory has declined on average by 10 percent to 20 percent on an annual basis in the last year.
- In San Francisco, new listings are down across all price ranges, for an overall 23 percent decline.
- Sonoma, Contra Costa, and San Mateo counties saw slight increases in new listings, though mostly in higher price ranges.
- Newly constructed condominium inventory in San Francisco is at half the level from a year ago, with about 600 units on the market.
- Appreciation soared in March, with the median price in the Bay Area increasing by 19 percent year over year.
- Santa Clara County’s median price jumped by 34 percent year over year in March.
- The share of homes selling for more than asking price reached a high at 74 percent for the Bay Area and 86 percent in Santa Clara County. Sonoma County saw the lowest number of premiums, with 52 percent of homes selling for more than asking price.
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