People get excited about home prices going up or down based on the median price statistics, which are easily skewed. The explanations are humorous too, where the declines tend to be dismissed, and increases lauded (in bold below).
According to PropertyRadar’s report, the median price of a California home in September was $405,000, which was down 2.4% from a revised $415,000 in August. It was also down 2.6% from the 2015 high of $416,000 in July.
On a year-over-year basis, the median price of a California home was up 3.3% from $392,000 in September 2014.
Prices may be up on a yearly basis, but Schnapp said that price appreciation in many parts of the state has slowed or stopped entirely.
In fact, on a monthly basis, prices were lower in 21 of California’s 26 largest counties, Schnapp said.
According to PropertyRadar’s report, the counties with the largest price declines were Contra Costa (-5%), Kern (-5.2%) and San Mateo (-3.3%).
San Francisco prices fell 11.8% for the month but the decline is likely an artifact of the mix of homes sold rather than an actual price decline, PropertyRadar’s report showed.
On an annual basis, prices are still appreciating, but in general at a much slower pace.
Home prices in a few northern California counties, mostly concentrated in the Bay Area, continue to appreciate rapidly. Counties experiencing the highest annual price appreciation were Santa Cruz (+18.1%), Merced (+15%), Santa Clara (+13.8%) and San Mateo (+11.3%).
“Homes in the Silicon Valley corridor, consisting of San Francisco, San Mateo and Santa Clara counties, continue to buck statewide trends and are experiencing double-digit price appreciation,” Schnapp said. “The increased demand from plentiful well-paying jobs, sky high rents, and fear of higher mortgage interest rates have propelled home prices into the stratosphere.”
Schnapp said that in September, more than half of all homes sold in San Francisco and San Mateo counties exceeded $1 million.
“I am frequently asked how long can this continue?” Schnapp said of the San Francisco price explosion. “My answer is, ‘Until you run out of eager buyers and bankers willing to lend,’ and we clearly are not there yet.”
Click on the link below for the complete NSDCC active-inventory data: