Sales volume across the Bay Area was down on both a monthly and annual basis in October, as affordability conditions kept many hopeful buyers from entering the market. And Napa County homebuyers are getting some relief this fall, as inventory expanded substantially in October.
Bay Area home shoppers who have been considering buying a property in one of our region's more suburban communities might want to sit up and take notice, as affordability in some places has dropped significantly from last year due to increased competition and rising prices.
The number of homes on the market remained in short supply across Northern California as the fourth quarter kicked off, with the months' supply of inventory (MSI) dropping across most of the Bay Area and prices hitting one-year peaks in Marin and Napa counties. Get all the data you need to keep current with local market conditions in Pacific Union's October Real Estate Update.
Bay Area property prices continue to enjoy double-digit-percent annual increases, even as appreciation slows across the rest of the Golden State. And in Silicon Valley, homebuyers seem to have no shortage of cash at their disposals.
Even though price gains have outpaced wage growth across the majority of the U.S., homes began the year more affordable than they had been in two years. That's not particularly true in the Golden State, where half of the country's least-affordable real estate markets are located.
Although California home sales eased a bit as the summer wound down, activity is at its highest level in nearly three years. Here in the Bay Area, a lack of available homes caused sales volume drops across the board and should keep prices rising for the remainder of 2015.