Thursday, May 09, 2019

California Bay Area Home Sales Decline 4% YoY in April, Inventory up 18% YoY

by Calculated Risk on 5/09/2019 04:52:00 PM

From Pacific Union chief economist Selma Hepp: Bay Area housing market shifting in anticipation of IPO demand

• IPO expectations are already showing up in home sales activity, particularly in San Francisco and San Mateo

• Sales of homes in San Francisco, San Mateo and Alameda have solidly exceeded last year – up 7 percent, 4 percent and 2 percent respectively year-over-year in April

• Santa Clara, Wine Country and Contra Costa remain slower compared to last year

• Homes priced between $1 million and $2 million continue to struggle, except in San Francisco and San Mateo, likely a result of tax reform changes and reduced state and local tax (SALT)and mortgage interest deductions

• Nevertheless, sales of homes priced above $3 million have surged again, posting a 5 percent year-over-year increase, matching last year’s peaks

• While growth in inventory of homes for sales is broad based, availability of homes priced above $3 million accelerated again to a 26 percent annual growth in April

• While price growth remains flat in most regions, San Francisco median prices up 2 percent year-over-year in April

• A 9 percent annual increase in homes under contract suggests buyers are back in droves, especially for homes priced over $3 million, up 44 percent year-over-year