The Bay Area’s housing market remained strong throughout all seven counties that we serve during the first quarter of the year. While each county had slight dips in sales volume from the previous quarter, the overall total number of homes sold for the collective Bay Area went up 3 percent year-over-year. Three of the four regions experienced significant jumps in average sales price — pushing the regional average to $1.074 million in Q1 2018 — up 10 percent from last year. Historically low unemployment rates, supported by a healthy and high-earning job market, continues to push the demand for housing to new heights in several parts of the region. On average, homes across the Bay Area sold at an average rate of 30 DOM, moving 22 percent faster than this time last year.
The Mid-Peninsula’s $1.924 million average sales price this quarter was up 23 percent from last year’s $1.569 million, resulting in the largest year-over-year gain regionally. San Mateo County had 769 transactions this quarter, the Bay Area’s second-lowest sales volume in Q1. Homes in the $1-2 million range accounted for 55 percent of all Mid-Peninsula sales this quarter with 426 homes sold.
San Francisco’s single-family home market set the highest average sales price for the Bay Area at $1.961 million. In addition to growing 11 percent from last year, the city’s first-quarter average was also 2 percent more than the previous record set in Q4 2017. A total of 388 single-family homes and 527 condominiums sold in Q1, up 2 percent and 12 percent, respectively from Q1 2017. Similar to the Mid-Peninsula, 54 percent of the city’s transactions occurred in the $1-2 million range this quarter.
The North Bay’s $1.056 million average sales price this quarter rose 10 percent from Q1 2017 and 6 percent from Q4 2017, making it the highest recorded figure for the region in the last 10 years. In both Napa and Sonoma County, the average sales price grew 14 percent from last year to reach $994,214 and $842,262, respectively. Marin County’s $1.637 million average this quarter was the county’s second-highest average ever recorded, falling just shy of the $1.659 million set in Q2 2017.
The East Bay posted an average sales price of $819,909 this quarter, up 3 percent from Q1 2017, and down just slightly less than2 percent from Q4 2017. The East Bay continued to have largest sales volume of all four regions this quarter, seeing a total of 3,827 homes sold and staying in line with last year’s trends. Both Alameda and Contra Costa County saw most of its sales activity take place within the $500K-$1 million range, accounting for 51 percent of all homes sold in the East Bay in Q1 2018.
BAY AREA MARKET SHARE
The Bay Area netted $6.945 billion in total sales this quarter for its 6,466 units sold. The East Bay had the largest market share of all four regions at 59 percent by unit and 45 percent by volume. The North Bay followed with market share by unit and volume both at 23 percent. The Mid-Peninsula accounted for 12 percent of all units sold and 21 percent by volume. San Francisco represented 6 percent by unit and 11 percent by volume.