While Bay Area home sales were relatively flat in June (up 0.2 percent year-over-year and month-over-month), and listed home sales in San Francisco were down nine percent, recorded home sales in San Francisco were up 6.4 percent versus the year before as a backlog of sales in new developments continued to close escrow.
That being said, at a time when home sales volume should be increasing due to seasonality and inventory has been ticking up, the recorded sales volume in San Francisco dropped 12.4 percent from May to June, according to DataQuick. The sales volume in San Francisco has increased an average of 3.4 percent from May to June over the past ten years.
And with an increasing percentage of new construction sales in the mix, the median price paid for a property in San Francisco hit a record $1,000,000 last month. That’s 5.8 percent higher than the previous record of $945,000 set in February, 7.3 percent higher year-over-year, and 77.8 percent higher than the $562,000 mark set in January of 2009. As always, keep in mind that while movements in the median sale price are a great measure of what’s in demand and selling, they’re not a great measure of actual appreciation.
Having peaked at $665,000 in July of 2007, the median sale price for a home in the Bay Area increased 0.2 percent to $618,000 in May, up 11.4 percent year-over-year and the highest median price since November of 2007. The median price had fallen to $290,000 in March of 2009.
At the extremes around the Bay Area in June, sales volume was 3.6 percent lower on a year-over-year basis in Alameda (a loss of 60 transactions) with a median which was higher by 9.3 percent. The median price paid for a home in San Mateo increased the most, up 14.9 percent with a 4.8 percent increase in transactions (35).
Keep in mind that DataQuick reports recorded sales which not only includes activity in new developments, but contracts that were signed (“sold”) months prior but are just now closing escrow (or being recorded) and any properties that were sold “off market.”