The county Q2 2019 median house sales price was a tad above that of Q2 2018, but remains below the peak reached last summer.
Home Sales by Property Type & Bedroom Count
Sales Volumes: General Market
& Higher Price Segments
For the overall county market, spring sales volume in 2019 was a little above spring of last year, but both were down from levels seen in previous years. In 2018, Napa home sales volume peaked for the year in Q3, the summer market.
As illustrated in the next two charts, sales of higher priced homes peaked in the second half of last year. Year-over-year, Q2 2019 sales were well down from Q2 2018.
In the $2 million+ market, there were twice as many active listings in Q2 as sold in the last 12-month period. This price segment is deep in “buyer’s market” territory, with supply currently out-pacing demand.
Selected Market Indicators
The market strengthened considerably in spring – as is typical – but, generally speaking, standard measurements of demand show an appreciably softer market year-over-year. This is a very common dynamic around the Bay Area.
Overpricing: Negative Effects for Sellers
& Opportunities for Buyers
We performed longer-term analyses of the effects of overpricing – as indicated by the need for price reductions before the property sold – on every major market in the Bay Area and the results were uniformly similar. As would be expected, there were dramatic differences in the sales price to list price percentage and time on market before sale. But there were also substantial differences in the average dollar per square value realized upon sale.
Overpricing lowers values for sellers, which also signifies opportunities for buyers who keep an eye out for price reductions and react accordingly.
Mortgage Interest Rate Trends
A sudden, steep drop in interest rates since late 2018 has reduced home ownership costs considerably for home buyers, thus helping to increase demand throughout the country.