Bay Area House Price Appreciation Rises as Market Activity Plunges in the
Fourth Quarter
PLEASANTON, Calif., Jan. 24 /PRNewswire/ -- Reacting to the country's
liquidity crisis, housing market activity in the Bay Area continued on a
downward slide in the fourth quarter of 2007, as all housing types experienced
dramatic decreases in unit sales -- down 39 percent, year-over-year --
according to report released today by the research division of Prudential
California Realty based on an analysis of MLS data. However, the region-wide
decline in activity levels had little effect on median house price
appreciation, as both detached homes and condominiums experienced a seven and
eight percent increase, respectively.
"Steady activity in high-end Bay Area markets induced a significant
increase in prices this quarter, while entry-level markets were characterized
by a dramatic reduction in sales," said Scott Kucirek, general manager of
Prudential California Realty, based in Pleasanton. "Looking forward, the next
two quarters could remain challenging, as high-end buyers may take a
'wait-and-see' approach, while financing options will remain limited for those
seeking entry-level homes."
Fourth Quarter 2007 Bay Area Market Summary
Housing Type Median Price** Home Sales
Q407 Q406 % Change Q407 Q406 % Change
Single-Family $785,058 $735,295 +7 6,967 11,503 -39
Detached Homes
Single-Family $527,859 $490,554 +8 1,672 2,540 -34
Attached Homes
Housing Type Average Days on Market* Active Listings+
Q407 Q406 Difference Q407 Q406 % Change
(Days)
Single-Family 70 58 +12 44,132 39,844 +11
Detached Homes
Single-Family 71 62 +8 8,686 8,611 +1
Attached Homes
Of the Bay Area markets surveyed, Marin and Santa Clara County yielded the
highest year-over-year price appreciation, rising 13 and 11 percent,
respectively. San Francisco and San Mateo, two areas brimming with job
opportunities, also showed noticeable price gains, up 10 and nine percent,
respectively, from the same period last year.
Meanwhile, other counties in the region comprising a larger number of
entry-level and mid-range markets had fewer interested or qualified buyers,
despite the availability of affordable properties; Solano County, in
particular, suffered a 48 percent decrease in market activity, year-over-year.
Market activity remained unpredictable in some counties in the fourth
quarter, as reduced unit sales and higher median prices forced some Bay Area
buyers to wait for an improvement in market conditions. Qualified buyers in
these counties favored properties in well-appointed neighborhoods, resulting
in particularly strong sales-to-price disparities in Los Gatos, Palo Alto and
Sunnyvale (Santa Clara County) and Burlingame, Portola Valley and Redwood City
(San Mateo County) for single-family detached homes. Sellers in mid-range and
high-end communities who did not receive their asking price tended to retract
from the market. At the same time, entry-level communities in these same
counties consisted of many sellers who were on the market due to a pressing
need, such as foreclosure.
Added Kucirek: "The Bay Area real estate market still presents many
questions as we move into 2008. Market activity may decrease slightly in
conjunction with a mild price adjustment later this year, although entry-level
markets hit hardest over the last two years may again look attractive to both
first-time buyers and investors."
Survey of Bay Area Counties - Median Prices - Fourth Quarter 2007
County Single-Family Detached Homes Single-Family Attached Homes
Q407 Q406 % Change Q407 Q406 % Change
Alameda $638,569 $635,101 +1 $376,901 $415,572 -9
Contra Costa $597,736 $639,396 -7 $305,779 $347,796 -12
Marin $1,045,331 $967,286 +8 $663,934 $546,475 +22
Napa $604,500 $610,000 -1 $399,999 $425,000 -6
San Francisco $1,080,335 $970,548 +11 $799,559 $744,420 +7
San Mateo $1,133,184 $998,199 +14 $499,408 $496,812 +1
Santa Clara $942,782 $853,559 +11 $487,846 $438,207 +11
Solano $384,626 $457,415 -16 $234,778 $293,420 -20
Sonoma $521,441 $563,023 -7 $320,242 $349,248 -8
Bay Area $785,058 $735,295 +7 $527,859 $490,554 +8
Survey of Bay Area Counties - Unit Sales - Fourth Quarter 2007
County Single-Family Detached Homes Single-Family Attached Homes
Q407 Q406 % Change Q407 Q406 % Change
Alameda 1,396 2,471 -44 249 398 -37
Contra Costa 1,199 2,158 -44 220 320 -31
Marin 357 498 -28 90 138 -35
Napa 116 187 -38 15 32 -53
San Francisco 547 701 -22 473 548 -14
San Mateo 777 1,091 -29 140 266 -47
Santa Clara 1,572 2,604 -40 342 594 -42
Solano 427 837 -49 54 95 -43
Sonoma 576 956 -40 89 149 -40
Bay Area 6,967 11,503 -39 1,672 2,540 -34
* Days on market is the number of days a property was listed on the
market until it went under contract at its final listing price. This is
may not reflect previous listings.
** The median home price for the entire region is the weighted mean of
median home prices of cities within the San Francisco Bay Area.
+ Active listings is the sum of listings that were available for sale for
at least one day within the quarter. This can include listings from
previous quarters.
Data are sourced from multiple listing services and are deemed reliable
but not guaranteed.
All percentages rounded to nearest whole number.
Bay Area refers to sales within Alameda County, Contra Costa County, Marin
County, Napa County, San Francisco County, San Mateo County, Santa Clara
County, Solano County and Sonoma County.
About Prudential California Realty
Founded in 1887 as Mason-McDuffie Real Estate and transitioning to the
Prudential name in 1997, Prudential California Realty (PCR) and its sister
affiliations in Nevada and Texas are a leading innovator of real estate
technology solutions to its agents and clients. Now the 8th largest national
real estate brokerage among companies using settlement services, Prudential
CA/NV/TX provides comprehensive real estate solutions when buying, selling and
owning a home with more than 11,000 transactions and $5.4 billion in annual
sales for 2006. The company offers consumers full MLS access to home listings
through its website http://www.PruRealty.com. Part of the tri-state
affiliation owned by David Cobo and Ed Krafchow that includes Prudential
California Realty, Prudential Nevada Realty, Prudential Texas Properties and
Prudential Texas Realty the organization cumulatively has more than 2,600
agents and 62 offices. Prudential California Realty is an independently owned
and operated member of the Prudential Real Estate Affiliates.
SOURCE Prudential California Realty
Elli Karagiorgas, +1-415-283-3216, elli@mcipr.com, or Mark Cohen,
+1-415-283-3232, mark@mcipr.com, both of Mansfield Communications, for
Prudential California Realty
