The Pacific Union International Q3 2011 real estate market report offers home buyers and sellers the most comprehensive real estate market report including: volume, number of homes sold, average days on market, and price.
Below is the summation of each county’s report from Sonoma, Marin, San Francisco, Alameda, Napa, and Contra Costa. Click the magazine to view the rest of the online Q3 Market Report.
Sonoma
One last interesting note is that the $2,000,000 – $4,000,000 price range has actually had an increased number of sales YTD in 2011 over 2010. In August, 2011 alone, 8 sales occurred in this price range. Of those eight sales, only two were purchased with cash – the other six obtained financing. This is one indication that there is still confidence in real estate investment by high net worth buyers and financing available to those that can qualify.
Marin
We have certainly benefited from more realistic sellers in the marketplace. This may be a result of access to plenty of meaningful comparable sales in the market as well as great examples of over-priced homes. Time on the market is clearly not a seller’s friend – statistics from the MLS confirm that homes on the market for over 90 days sold for 89% off their original listing price. This means -$110,000 under original asking price on a $1 million home. Conversely, homes that sell in less than thirty (30) days on the market enjoy a sale price of nearly 98% of the original listing price. Pricing decisions in this market are paramount to achieving a timely sale and maximizing seller’s proceeds.
San Francisco
“Precision pricing” in this market is demonstrably paramount in achieving not only a timely sale, but also in maximizing Seller proceeds. For their part, Buyers have become increasingly educated on and conversant with recent transactional trends, including new inventory (which, by the way, is substantially below 2010 YTD figures) and recent sales. We find Buyers to be generally patient, focused, value-sensitive and, ultimately, unwilling to make offers on overpriced listings — which is to say qualified Buyers concentrate on the best-priced inventory. They approach the primary home market in terms of investing in a home vs. speculating on an appreciating housing market.
Alameda
We are certainly seeing more realistic sellers in the marketplace. This may be a result of access to meaningful comparable sales in the market as well as many examples of over-priced homes. Time on the market is clearly not a seller’s friend. Statistics from the MLS confirm that homes on the market for more than 30 days sold on average for 89% of their original listing price; that is $110,000 under the original asking price on a million dollar home. Conversely, homes that sold in the first 30 days on the market sold on average for 98% of their original listing price. Pricing decisions in this market are paramount to achieving a timely sale and maximizing sellers’ proceeds.
Napa
It is our feeling that Napa County housing prices will remain fairly stable for the next 15 – 18 months. We expect mortgage rates to remain in the five-percent (5%) range (in some loan products lower). As of August 31, 2011, the Napa County unemployment index was 8.8% v the California average of 11.9%. This means 91.2% of all those looking for work in Napa County are employed. We recognize a market recovery will be led by quality job creation, which will be followed by an increase in our clients’ confidence.
Contra Costa
It is our feeling that Hwy 24/680 corridor housing prices will remain fairly stable for the next 15 – 18 months. We expect mortgage rates to remain in the five-percent (5%) range (in some loan products lower). We have certainly benefited from more realistic sellers in the marketplace. This may be a result of access to plenty of meaningful comparable sales in the market as well as great examples of over-priced homes. Time on the market is clearly not a seller’s friend – statistics from the MLS confirm that though inventory in Alamo and Danville is high, only 25% of those homes are going into contract, and in those areas the number of closed transactions is the lowest since April of this year. September’s average sales price in Alamo and Danville dropped 3%.