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Monthly Real Estate Market Report- April 2016

June 15, 2016

The North Bay region saw month-to-month growth in the residential real estate market for April, 2016, but compared to a year ago, the lack of inventory is slowing things down for now. Ā State sales compared to a year ago show a decrease in the number of sales for all of California, by 8.3%, the lowest drop since 2008. Lower inventory is the main reason for this drop in state figures. For the North Bay Region our sales grew for the month reflecting the continued demand for properties in this region. 1,152 existing homes were sold in the region, up 2.7% from the month prior. Condo sales however, saw a decrease in the number sales compared to March with 141 units sold in The North Bay Region, down 19.0%

Month-to-month sales for the state have increased. Reported data shows 35,978 properties (residential single-family homes and condominiums), sold in April compared to the final count of 34,002 homes sold in March. Month-to-month median prices also up for both the state and the region. Comparing April 2016 to March 2016 the median price for all homes across the state in April was $432,500 compared to $410,000 in March. In the North Bay Region median sale prices increased 6.3% compared to last month, coming in at $520,000. Northern California counties saw the biggest increase in median prices comparing year-over-year figures. Santa Clara County had the biggest increase with a rise of 16.3% in median prices, while Merced County went up by 13.9%, and Sonoma County by 13.7%

CA- North Bay Region Single Family Median Home Price
April 2015 vs April 2016

061516_21Clarus MarketMetricsĀ® Trendgraphics

Cash sales across the state continued in line with the 12-month average, with 21.0% of sales across the state being done with cash. There was 0.3% increase compared to March, but comparing year-over-year figures, cash sales went down by 11.0%. The county that saw the most cash sales was Santa Cruz County with 29.8%. This was followed by Monterey County with 26.8% in cash sales, Marin County with 26.7% cash sales, and San Francisco County having 26.3% in cash sales for the month. With continued investment alternatives being rather volatile, those with cash are making the safer investment with property before the seasonal pricing increase occurs.

 

CA- North Bay Region Number of Properties Sold by Month
April 2015 vs April 2016

061516_32 Clarus MarketMetricsĀ® Trendgraphics

Other types of real estate purchases saw a decrease overall for the month of April. Flip sales decreased by 13.9% compared to the month prior, and 7.6% from over the last 12 months. There was also a decrease in Institutional Investors purchasing property. LLC and LP business bought 1.1% fewer properties in April compared to the month before. This slow down could also be due to the current lack of inventory. One thing to keep in mind when it comes to new home construction is that while we have growth occurring, many of the new homes being built will not be on the market until next year, or even into 2018. With this in mind, some buyers may decide to hold out until there is a great inventory supply to choose from. Regardless of the lower inventory we currently have in both the North Bay region and across the state, watching prices increase month-over-month highlights that there is still demand for the market.

When you are ready to sell or buy a home, me and my team are ready to help you through the entire process. Our goal is to make your experience both easy and pleasurable. Contact us today at (925) 634-7820, or by email at realestate@cecily.com.

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