Monthly housing statistics don’t always give us proper perspective on market trends, making it valuable to compare our assessment to that of national experts. Over the past several months, we have seen the Bay Area residential market perform fundamentally well, although certain statistical ups and downs occurred, signaling less heated conditions. The rate of sales has slowed, the average number of days required to sell a home is 22 days less than this time last year, sellers are still achieving prices 2-3% above asking, and inventory remains tight, although more homes are now listed for sale.
The S&P/Case-Shiller Home Price Index-which includes home sales in Marin, San Francisco, San Mateo, Alameda and Contra Costa counties-measures repeat sales (same single family home reselling) and provides a better apples-to-apples comparison of home value changes versus a median price that has a different mix of homes sold each measurement period. The Case-Shiller index reached an all-time high in November 2015 and has increased each month since. This indicates true value increase in Bay Area home values. A closer look does reveal that the rate of price increase has slowed from about 14% annually in 2014 to 10% in 2015 and 8.4% for the most recent reading in March 2016. Still a very positive trend and moderating price increases generally indicate better market stability and balance emerging.
Both the local market assessment and Case-Shiller index show market fundamentals to be solid. With mortgage rates likely to stay low for the foreseeable future, the housing market is expected to continue its strong performance.
All of these trends are reflecting countywide data, but what's happening in each city or even a specific neighborhood may vary widely. Real estate is nuanced and highly local. For more personalized information, call me today at 415.328.4143. I'll match you up with a member of our team who can assist with all your real estate needs.
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