Bay Area Real Estate Market Update: December 12, 2020

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Bay Area Real Estate Market Update: December 12, 2020

For the 4 weeks ended December 9, 2020, the median sale price / square foot for Bay Area homes fell 1.2% to $684 from $692 compared to the prior month 4 weeks ended November 11th, 2020, and rose 5.9% from $646 compared to the 4 weeks ended December 9, 2019.

The 1.2% month over month decrease actually reflects above average resilience in the market for this time of the year, as last year same time home prices declined by an even larger amount (-2.7%).  The home price resiliency is being supported by low inventory levels and stable demand, as demand typically falls more sharply this time of year.  For example, Alameda prices up 1.2% month-over-month still have not slowed demand in-line with typical seasonal trends; last year Alameda prices fell -0.9% month-over-month as homes sold fell -9.3%, but this year Alameda homes sales are only down -3.0% month-over-month.  The same is true of the strongest market this month, Santa Clara (prices +1.7% MOM), where home sales rose 0.6% month-over-month, whereas last year they fell 7.9% in their typical pattern.   

For the 4 weeks ended December 9, 2020, the sales / new listings ratio for Bay Area homes fell to 1.42 from 1.81 compared to the prior month 4 weeks ended November 11th, 2020, but rose from 0.96 compared to the 4 weeks ended December 11, 2019.  The month-over-month increase to 1.42 from 0.96 is a result of new listings declining -35.4% month-over-month while sales only experienced a slight decline of -4.0%.  

The largest sales/new listings imbalance is occurring in Marin, where new listings fell back to their usual level around 110-120 units, but sales activity, at 297 home sold, is nearly 2x prior year levels, which suggests there is more room for prices to increase in this market.   


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