Northern California’s Bay Area 2016 Year End Review
These statistics and information suggest that it is the right time to invest in real estate, before the inevitable increases that historically occur in the Spring.
Pacific Union’s Economist, Selma Hepp, recently published the following data regarding the real estate market in the Bay Area:
- The December home sales decline in the Bay Area was larger than historically seen between November and December.
- Activity among higher-end homes picked up in December, especially in San Francisco and Silicon Valley, where that price point struggled earlier in the year.
- The decline was led by slower activity among homes priced below $1 million, which is a function of higher mortgage rates, but also a severely depleted inventory of affordable homes for sale.
- December inventory levels fell by double the rate from November than seen since 2008. There were 4 percent fewer home sales in 2016 than in 2015, with a larger decline in Marin and Alameda counties.
- Among the eight Bay Area counties — excluding Solano — only Napa County home sales activity finished 2016 on a stronger note than last year.
The strongest 2016 appreciation was recorded in Sonoma, Alameda, and Contra Costa counties. December buyers remained enthusiastic in Napa and Sonoma counties, while San Francisco and Silicon Valley continued to see relatively fewer buyers willing to engage in bidding wars.
Overall, however, home sales in all of 2016 were only about 4 percent lower than in 2015. Marin County saw the largest decline, with a 7 percent drop in sales, followed by a 5 percent decline in Alameda County. The other Bay Area counties saw 3 percent to 4 percent declines in sales.
We are here to help you take advantage of the real estate market before prices increase, with alternative financing lending, also known as Hard Money. If you are turned down elsewhere or need a fast loan, call us. We can answer your questions at 707-523-2099.
Pacific Union Bay Area Real Estate Blog: http://blog.pacificunion.com/election-outcome-and-rising-mortgage-rates-temporarily-halt-bay-area-sales/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+pacunionblog+%28Pacific+Union+Blog%29