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Monthly Real Estate Market Report- May 2016

June 30, 2016

062516_01The North Bay region saw month-to-month growth in the residential real estate market for May, 2016, but compared to a year ago, the lack of inventory is slowing things down for now. State sales compared to a year ago show a decrease in the number of sales for all of California, by 3.8%. Continued lower inventory, along with higher prices, are the main reasons for this drop in state figures. For the North Bay Region, however, our sales grew for the month, reflecting the continued demand for properties in this region. 1,275 existing homes were sold in the region, up 2.9% from the month prior. Existing condo sales also saw an increase in the number sales compared to April, with 189 units sold in the North Bay Region, up 31.3%.

Month to month sales for the state have increased. Reported data shows 37,093 properties (residential single-family homes and condominiums) sold in May, compared to the final count of 36,287 homes sold in April. Month-to-month median prices remained the same between April and May at $430,000. In the North Bay Region, median sale prices increased 2.9% compared to last month, coming in at $530,000. Price appreciation in the North Bay also saw significant growth for the month. Appreciation values in Santa Clara County increased by 15.1%, Contra Costa County by 13.1%, and Santa Cruz County by 12.2%.

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

062516_021Clarus MarketMetrics® Trendgraphics

Cash sales across the state increased 1.5% from April to May, with 20.7% of sales across the state being purchased with cash. Cash sales represented one in four sales. Between investors seeking property over other traditional investments such as Treasury bills, and an increased number of families seeking to buy a home or condo for their millennial children going to college, residential property is being used more and more as a safer place to keep cash.  The county that saw the most cash sales was Monterey County, with 31.0%. This was followed by Fresno County with 25.9% in cash sales, San Francisco County with 24.2% cash sales, and Riverside County having 23.9% in cash sales for the month.

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

062516_032 Clarus MarketMetrics® Trendgraphics

Other types of real estate purchases saw a decrease overall for the month of May. Trustee sales by LLC and LP businesses bought 3.5% more properties in May compared to the month before, and by 19.5% compared to a year ago. As this is a continued trend from the month before, this area will be one to watch to see if further significant increases occur during the rest of 2016. Sales across the state for the month were minimal, due in large part to the lower inventory alongside increased pricing. Many buyers are choosing to wait for now. Demand for properties in the North Bay Region, however, continues to be strong, reflecting the popularity of the region despite current inventory levels and price increases.

When you are ready to sell or buy a home, my team and I 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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