San Francisco Bay Area some home prices are dropping 1st time 4yr

[Sam Shueh]

                                                      Sam Shueh, Campbell, CA                                          

                                                            May 11,2016

After 4th quarter 2011 (trough) home price went up recovering from the Great Recession. Home prices kept climbing up four years straight. There was greater demand for housing and more jobs to support it. New homes constructions were on hold for several years during the recession. As more investment money was putting into high technology that created a job boom in Social Media, self driving automobile development sectors. People are opt to pay high prices to get into a home.

Home prices in the San Francisco Bay Area were down 1.8% on a year-over-year basis in March, the first such drop in four years. For years, the mild climate and attraction to the Ocean attracted many high promising technology to call it home. As long as high income skilled technology workers are hired the local real estate prices surge. The Bay area is one of the most competitive markets in the US next to New York, Seattle, and Denver. Not necessarily in that order.

Started late last year I started seeing less multiple offers and people are less inclined to fight all over some shacks and are more selective. Many have stopped looking at homes as it cost arm and a leg to own housing.

I am not a strong supporter of using median home prices for comparison. Somehow the academians once set it without realizing home prices have both tail ends which can shift median (i.e. mid-point) left or right especially there are huge estates or small sized home in a small community that can distort the comparison. I use $/sf and average home price for a typical home for better comparison.

I analyzed San Jose Mercury News May 8, 2016 Bay Area Real estate News data.

San Mateo County (March 2016)

All homes $950,000 -2.6% 512

All used homes $1,188,000 -1.1% 377

All condos $ 681,000 12.7% 120

All homes lowered from one year ago to $950,000. People today bought more condos at $681,000 (median price).

Atherton $4,425,000 -40.0% 10 sales

Emerald Hills $1,200,000 -27.8% 45

Hillsborough $3,500,000 +1% 9

Woodside $5,650,000 +27.8% 11

These neighborhoods home prices are not as drastically changed as previous quarters. But it indicated more affluent neighborhood are seen chilling in sold home prices. Put it differently, the multi-million dollar homes are not selling and more affordable lower million dollar homes are selling well. These are yearly increases in % in median home implying 50% are lower and other 50% are higher.

Santa Clara County (March 2016)

All homes $855,000 +10.3% 1389

All used homes $980,000 +9.6% 870

All condos $675,000 +21% 395

Start with more affluent neighborhoods with top schools.

Palo Alto $2,472,000 +.09% 26

Palo Alto(306) $2,160,000 -13.02% 21

Los Altos $2,640,000 +4.5% 28

Los Alto Hills $4,050,000 -5.7% 7

Cupertino $1,590,000 +0.5% 31

95129 $1,392,000 -0.2% 21

94087 $1,600,000 +6.5% 31

95130 $1,303,000 +24% 21

Saratoga $2,015,000 -10.3% 27

Los Gatos(032) $1,605,000 +3.5% 27

94040 $1,511,660 +11.2% 14

94041 $1,535,000 -7.5% 7

94043 $1,280,000 +4.9% 36

94085 $1,130,000 +29.1% 13

94086 $1,112,000 +6.2% 37

94089 $1,082,000 +23.2% 11

95050 $856,000 +20.5% 20

95051 $972,000 +17.8% 53

95054 $951,000 +10.6% 20

95008 $1,010,000 +13.1% 31

95120 $1,460,000 +12.7% 31

Central San Jose

The following is in line with earlier report where the housing is so high, affordability is an issue home buyers need to move further away and currently Central San Jose enjoyed being one of the most desirable neighborhoods.

95117 $1,062,000 +26.4% 16

95124 $1,010,000 +7.2% 47

95125 $ 998,000 -.02% 70

95126 $754,000 +17.6% 22

95128 $828,000 +10% 25

North San Jose and Milpitas

95131 $831,500 +12.4% 40

95132 $842,500 +12.3% 26

95133 $692,000 +2.2% 22

95035 $795,000 +4.9% 55

Refer to North San Jose home prices 2016

Downtown or near San Jose town center

95110 $492,500 -4.4% 24

95111 $575,000 +3.6% 24

95112 $617,000 +2.8% 29

95116 $477,250 +12% 24

95122 $477,500 +10.6% 28

Refer to San Jose downtown home prices 2016 Q1

Evergreen neighborhood ( San Jose)

95121 $757,000 +19.5% 26

95148 $755,000 +5.6% 33

95135 $1,120,000 +4.7% 25

95138 $1,272,000 +7.8% 21

South San Jose neighborhoods

95136 $727,500 +4.1% 34

95123 $743,000 +16.1% 53

95119 $775,000 +5% 14

95139 $726,666 +7.8% 4

As people can not find quality homes they go further to South Santa Clara County. There are more selection in terms of larger custom homes at lower areal cost ($/sf) than Silicon Valley.

Morgan Hill $837,500 +25.9% 40

Gilroy $657,000 +18.9% 80

Contact me for direct link to each neighborhood sources. Sam Shueh Realtor