Overall, strong and steady was the name of the game for Bay Area real estate in Q3 2014. The average home sale price of $883,949 was a minor fluctuation from the previous quarter, and an 11 percent gain year-over-year from the $796,295 seen in Q3 2013. While limited inventory continues to be an issue for buyers across the Bay Area, sales volume was extremely solid this quarter in relation to what we’ve witnessed over the past few years. In fact, several areas even saw higher sales volume tallies this quarter than in the typically busier second quarter.
Napa, Contra Costa and Sonoma Counties all posted impressive Q3 numbers, with each county experiencing an all-time high in average sales price for its area. However, of the seven Bay Area Counties we represent, Napa County proved to have the strongest quarter in terms of its average sales price gains from both the previous quarter and previous year of 6 percent and 26 percent, respectively.
As for sales volume, the 9,556 properties sold across the region were almost exactly in line with Q2 of this year, and just a slight 6 percent dip from Q3 2013. This steadiness was aided by Alameda County and Sonoma County seeing sales volume increase from the previous quarter by 6 percent and 7 percent, respectively. It should also be noted that throughout the Bay Area, average days on market (DOM) before a sale showed minimal deviation from recent patterns.
The affluent areas of San Francisco and Marin County both saw noticeable dips in the total sales volume of homes, as inventory in those areas remains glaringly scarce. San Francisco also saw its average home sales price fall 11 percent from the all-time high recorded in Q2 2014. Still, the near $1.4 million average home sale—coupled with monstrous demand—should leave sellers in the area with very little concern.
With sales volume and home sale prices generally holding steady, the Bay Area experienced a very strong $8.447 billion in total sales this quarter. Following recent trends, the East Bay led the way with 57 percent of market share by unit and 47 percent of market share by cash volume. The North Bay and Mid-Peninsula both took home a respectable 22 percent of market share by volume as well. Due to severely depleted inventory, San Francisco accounted for just 6 percent of all sales and 9 percent of market share by volume.
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