Limited inventories, tight mortgage money and rising prices aren’t shutting down the recovery in the South San Francisco Bay area housing market.
Prices are soaring as homes sell like buttered hotcakes in the five-county, South San Francisco Bay Area-to-Monterey, CA (SSFBAM) region, which includes San Mateo, Santa Clara, San Benito, Santa Cruz and Monterey counties. The sales pace has risen 75 percent above 2007 levels, according to MLSListings.com, the area’s multiple listing service.
For the year ending in November, single-family home prices rose from 5 percent to 49 percent and condo prices were up from 39 percent to 60 percent, as closed sales on single-family homes rose by as much as 29 percent and condo sales were up as much as 24 percent.
The number of “days on market” (DOM) for single-family homes shrank by as much as 30 percent. DOM was down by as much as 62 percent for condos.
The big price gain was in Monterey County where the median condo price skyrocketed 60 percent from $131,000 to $210,000 in the year ending in November. Single-family home prices shot up 49 percent in San Benito, rising from $245,000 to $323,350, during the same period.
Single-family home prices were up 20 percent in both Santa Clara and Monterey counties, 10 percent in Santa Cruz County and 5 percent in San Mateo County.
Condos prices also boomed by 45 percent in both San Mateo and Santa Clara County and were up by 39 percent in Santa Cruz County.
Year-over-year price gains got a boost from record low mortgage rates low inventories. Single-family inventories were down by 50 percent in Santa Clara County, 45 percent in San Mateo County, 33 percent in San Benito County, 32 percent in Monterey County and 26 percent in Santa Cruz County.
Some condo inventories fell even more and were down 59 percent in Santa Clara County, 55 percent in San Mateo County, 24 percent in Monterey County and 20 percent in Santa Cruz.
New listings were unable to take up the slack and fell virtually across the board for both condos and single-family homes.
MLSListings says there may be a tipping point where the lack of inventory and new listings turn sales to a trickle, but price growth should continue for the immediate future. The seasonal slow down depressed month-to-month sales and prices in most counties.
Get the complete report at: “November Housing Update: Silicon Valley Sales Surge – Bay Area Homes Buck Tight Inventory and Tough Lending”