Half of Homes Sold in San Francisco and San Mateo Counties Exceed $1 Million in September
California Sales Slow in September, Down 4.3 Percent from August, Median Price Down 2.4 Percent But Remains Near 8-Year High
Home prices in the Silicon Valley corridor, consisting of San Francisco, San Mateo and Santa Clara counties, continue to buck statewide trends and are experiencing double digit price appreciation.
The increased demand from plentiful well-paying jobs, exorbitant rents and fear of higher mortgage interest rates has sent home prices into the stratosphere.
In September, more than half of all homes sold in San Francisco and San Mateo counties exceeded $1 million. How long can this continue? Until you run out of eager buyers and bankers willing to lend. We are clearly are not there yet.
Cash does not seem to be in short supply in the Silicon Valley corridor. So far in 2015, 21.5 percent of sales were for cash and 61 percent of buyers put down at least 20 percent of the purchase price. At median price levels bouncing off of a million dollars, that is an impressive statistic.
On an annual basis prices are still appreciating but in general at a much slower pace. Home prices in a few northern California counties continue to appreciate rapidly but they are the exception, not the norm. Counties with the highest annual price appreciation rates were Santa Cruz (+18.1 percent), Merced (+15.0 percent), Santa Clara (+13.8 percent) and San Mateo (+11.3 percent).
The median price of a California home in September was $405,000, down 2.4 percent from a revised $415,000 in August and down 2.6 percent from the 2015 high of $416,000 in July. On a year-over-year basis, the median price of a California home was up 3.3 percent from $392,000 dollars in September 2014.
Price appreciation in many parts of the state has slowed or stopped. On a monthly basis, prices were lower in 21 of California’s 26 largest counties.
Seasonal forces pushed California single-family home and condominium sales down 4.3 percent to 35,629 in September from a revised 37,227 in August but were up 5.8 percent from 33,674 in September 2014. Driving the increase in year-over-year sales was the 9.4 percent increase in non-distressed property sales.
Despite the increase over 2014, when you step back and take a look at sales volumes over a longer period of time, they remain weak. Lack of inventory and declining affordability are holding sales back.