After setting records for average sales prices in the second quarter, the housing market across all seven Bay Area counties that we serve, cooled off just slightly during the third quarter of this year. However, restricted inventory throughout the region along with high demand continues to keep an upward pressure on prices. The Bay Area’s overall average sales price reached $1,052,900 in Q3, up 9 percent from the $966,536 average in Q3 2016. In fact, average sales prices were up across the board this quarter, with each county seeing a year-over-year rise from the previous third quarter. The average Bay Area home sold after just 30 days on market (DOM) in Q3, moving at a slightly quicker pace than it did a year ago.
The Mid-Peninsula led the way with the highest average sales price in Q3 2017 at $1.772 million, up 9 percent year-over-year. This marked the highest third-quarter average sales price for San Mateo County in the last 10 years. Sales volume was down 2 percent from the previous year with a total of 1,131 homes sold this quarter. The largest number of home sales occurred in the $1-2 million range which saw a 4 percent increase in activity from a year ago.
The East Bay leads the way with the largest share of the market in Q3. Its 5,747 home sales cornered 60 percent of the market share by unit and its $4.9 billion home sales represents 49 percent of market share by volume. The average sales price in Q3 was the lowest regionally although its $868,875 posted price was the highest of any third quarter in the last 10 years and up 9.65 percent over Q3 2016’s $792,388. The largest number of sales in East Bay were in the $500-1 million range with 2,985 sales in Q3 up 1 percent from the 2,952 in Q3 2016.
San Francisco home sales accounted for 6 percent of the Bay Area’s total number of units sold in Q3, and 9 percent of its overall volume at $936 million. The city’s average sales price this quarter was the second highest among all regions at $1.655 million, up 3 percent from Q3 2016’s $1.607 million average. Single-family homes priced in the $1-2 million range experienced the most activity with a total of 325 homes sold, an 18 percent increase from the previous year.
At $1.008 million, the North Bay’s average sales price in Q3 2017 was also its best third-quarter average of the last 10 years, and was up 11 percent year-over-year. However, it’s worth noting that a $25 million closing took place in Calistoga this quarter, and therefore helped to drive up the region’s overall average. North Bay homes priced within the $500K-$1 million range experienced the most activity with 1,239 units sold in Q3. That figure was 8 percent higher than the previous year where a total of 1,144 units sold.
BAY AREA MARKET SHARE The Bay Area netted $10.121 billion in total sales for the 9,613 total units sold this quarter. The East Bay led to 60 percent of all sales and 49 percent of sales volume. The North Bay accounted for 23 percent of market share by units and 22 percent of sales volume. The Mid-Peninsula contributed 12 percent of all sales and 20 percent of sales volume. San Francisco was responsible for 6 percent of all sales and 9 percent of sales volume.