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Monthly Real Estate Market Report–July 2016

September 1, 2016

The state and North Bay region saw a decline in sales, typical for July, during the height of summer. For state data, at the outset, real estate sales appear to have had a significant drop, however there were two fewer business days in July 2016, compared to the year before. Taking this into account, the state saw a 3.0% decline in sales for the month, which is expected for this time of year. Regionally, 1,325 existing single-family homes were sold around the North Bay, down by 10.9% from June. Existing condo sales also saw a decrease in the number of sales compared to June, with 169 units sold, down by 20.3%.

State data shows 37,823 properties (residential single-family homes and condominiums) sold in July, down 12.8% from July 2015. Looking at year-to-date sales for the state, we are only down 2.0% from the same time period (January-July) in 2015, with a total of 244,035 properties sold so far. State median prices compared to a year ago increased by 5.0%, to $417,000 for single-family homes. In the North Bay Region, median sale prices saw a small decrease of 1.5% compared to last month, coming in at $512,000. Median prices remained flat or saw small decreases within the largest state counties, and prices are expected to remain stable, good news for sellers.

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

083116_1Clarus MarketMetrics® Trendgraphics

The biggest news for residential real estate sales in July is the significant drop in homeowners who are underwater. The number of owners who have negative equity in their homes fell by 5.4%, affecting 472,000 homes. This is down by 50% since July 2014, highlighting the growing strength of California real estate. Currently one in 18 homeowners are in a negative equity situation, whereas two years ago one in 8 families were affected. Even better news is that with over 575,000 owners now in a positive equity situation, more residents can now take advantage of lower interest rates for refinancing, selling and/or buying a new home.

While July saw less sales activities, sellers in the North Bay region are not letting this worry them. In fact, there was a consistent rise in listings for the month. Compared to a year ago, July 2016 saw an increase in the number of listings, in Santa Clara County up by 20.8%, San Mateo County up by 35.3% and in Alameda County up by 17.6%. These increases in residential market listings are great news for buyers looking to purchase in the North Bay; with more homes to choose from, buyers will have an easier time finding the home that is right for them.

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

083116_2Clarus MarketMetrics® Trendgraphics

Cash and flip sales also saw a small drop for the month of July, following the normal summer slowing for the season. Cash sales of both single-family homes and condos went down by 12.7% compared to a year ago, while flip sales were down by 14.6% for the total types of sales in the market. Investor sales also went down by 11.2% in year-over-year sales. These drops in sales figures for July are expected at this time of year with summer being a traditionally slower time for sales as vacations become a big focus for many families. While we have decreased for now, the market is expected to remain strong with additional growth.

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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