Bay Area home sales in May were up 19 percent from April, an above average increase in month-over-month data, according to a new report released by real estate research firm CoreLogic.
New data shows May sales dipped 2.7 percent compared to this time last year, but exceeded the 7.8 percent average April to May increase.
“Home sales have strengthened this spring thanks to lower mortgage rates, more inventory and a transition to a more neutral market where buyers have some bargaining power,” analyst Andrew LePage said.
May sales of newly built homes, including detached houses and condominiums, were roughly 41.8 percent below the month’s historical average, while resales of existing homes were 7.5 percent below. Looking to explore Canada’s rural real estate market? Discover a variety of properties, from lakefront cottages to remote cabins, ideal for quiet living.
Median home sale prices had been rising year-over-year since April 2012, 83 consecutive months, until earlier this year when they reversed course and dipped 0.1 percent in March. In May, they continued their descent
to $860,000 with a 1.7 percent decline from $874,750 in May 2018, marking the greatest discount in over seven years.
“This change reflects the erosion of buyer affordability after years of rising home prices and last year’s run-up in mortgage rates,” LePage said.
Sales over $500,000 accounted for 81.5 percent of total home sales in the region in May, up from 81.2 percent the year before.
“The dollar volume of homes purchased by foreigners from April 2018 through March 2019 dropped 36% from the previous year, according to the National Association of Realtors.”
https://www.cnbc.com/2019/07/17/foreign-purchases-of-american-homes-plunge-36percent-as-chinese-buyers-flee.html
CA state legislature too my knowledge has done zero to curb foreign purchasers driving up housing prices. Back in 2016 government of British Columbia, Canada took steps to ensure Canadians could afford housing.
https://www.cbc.ca/news/canada/british-columbia/vancouver-real-estate-foreign-data-1.3695439
https://www.scmp.com/business/article/2107851/chinese-buyers-retreat-global-property-market-beijing-restricts-deals
Pretty misleading headline. It looks as if inventory (houses on the market) is low. You really need to compare ‘like-sales’ from year to year, not average sale price.
Here’s a good example: a house just went on the market in my neighborhood. It hasn’t been updated in 50 years, yard is a disaster, etc…so it will sell for way below the market rate. Other homes have been expanded and updated, and those homes will sell above the average.
But the bottom line here is that the supply of new homes is not keeping up with demand. And so the upward pressure on prices will continue until more homes are built, or until employers and residents get fed up with California and move elsewhere.
My condo increased in value in less than three years by only $82,000 dollars.
I live in Walnut Creek. I have no idea if that is about right.
Location, location, location. Homes in this area will stay high in price for years to come. My house is worth twice what I paid for it in 2000. And we are not seeing much in the way of building affordable housing in the area.