Fremont ranks as one of the healthiest markets in California for homeowners, with San Jose not far behind. But what does “healthy” market mean for first-time buyers?
Fremont is the most stable and affordable housing market in the Golden State, according to Smart Asset, a personal finance technology company. San Jose ranked No. 4 on the list, while Oakland ranked No. 7.
“Homeowners in a healthy market should be able to easily sell their homes, with a low risk of losing money over the long run,” SmartAsset said in a statement accompanying the new data.
The study considered four factors: stability, affordability, fluidity and risk of loss. Affordability — measured as home costs as a percentage of income — made up 40 percent of the housing health index, while each of the other three factors accounted for 20 percent.
Homeowners in Fremont spend an average of almost 14 years in their homes, with just 2.8 percent of homes having negative equity, according to the report. Only 7.8 percent of the homes in the city have decreased in value. Fremont dwellers pay just 22.5 percent of their income in housing costs and can expect to sell their residences within about 25 days of putting them on the market.
San Jose residents also spend, on average, 14 years in their homes, with just 2.7 percent of homes having negative equity. Just 9 percent of homes have decreased in value. San Jose locals spend about 24.4 percent of their income on housing and can expect to sell their homes in 21 days.
Oakland homes sell the fastest of those ranked in the top 10 healthiest markets — a seller in the area can expect his or her residence to move in about 19.4 days. Dwellers spend, on average, 13 years in their homes, with 5.1 percent of residences having negative equity. Locals spend about 25.3 percent of their income on housing costs.
Of course, the market is healthy in these regions for sellers and established buyers, but what about first-time buyers or those with modest incomes looking to get into homeownership? Unfortunately, they’re still being priced out of the market.
Last month, the median price of existing single-family homes hit $1.13 million in Santa Clara County, up from $1.06 million a year earlier, according to data from the California Association of Realtors.
Housing prices in the region have skyrocketed in recent years with the median home price in San Jose consistently hovering around $880,000, compared to the national figure at $211,731. The increase in regional housing costs has forced many workers to move further from their jobs or to new tech hubs with cheaper housing.
Still, there are plenty of eager buyers. According to a March report from Redfin, around 63 percent of San Jose homes sold above list price in February, the highest share of “over asking” bidding in the United States. Oakland came in No. 3 with 59.1 percent of the region’s homes selling for more than what was listed.
Source: bizjournals.com ~ By: Gina Hall
California, Bay Area Inventory Continues to Shrink in August 9/22/17
- The median sales price for a single-family home in the nine-county Bay Area was $856,200 in August, an annual gain of 10.2 percent.
- Eight of nine Bay Area counties posted home price gains from one year earlier.
- Inventory dipped both statewide and in all nine Bay Area counties from August 2016.
The number of homes for sale declined statewide and in every Bay Area county from one year earlier — particularly entry-level properties — keeping prices at a 10-year high.
The latest monthly home sales report from the California Association of Realtors says that the median sales price for a single-family home in the state was $565,330 in August, up 7.2 percent from one year earlier. August marked the sixth straight month that home prices were higher than $500,000 and the third consecutive month that annual gains topped 7 percent. Year-over-year appreciation for the lowest-priced segment of homes was even higher, at 10.7 percent, further complicating matters for first-time buyers trying to get a foot in the door.
“These homes are selling faster than historically and for top dollar, adversely impacting entry-level buyers who are already struggling to afford to buy their very first home,” CAR President Geoff McIntosh said in a statement accompanying the report.
The median sales price in the nine-county Bay Area was $856,200, up by 10.2 percent from August of last year. Eight of nine counties posted annual price gains, ranging from 0.6 percent in Marin County to 17.9 percent in Santa Clara County. Year-over-year appreciation was flat in Solano County.
San Francisco overtook San Mateo County as the state’s most expensive housing market, with a median sales price of $1,380,000. San Francisco buyers also paid the highest premiums in California — 114.8 percent of original price. The state’s three other seven-digit real estate markets are also located in the Bay Area: San Mateo ($1,375,000), Marin ($1,207,120), and Santa Clara ($1,150,000) counties.
The driver behind the price growth will be all-too familiar to anyone who follows California and Bay Area real estate: more willing buyers than available homes. CAR says that active listings dropped by 11.9 percent from last August, while the months’ supply of inventory was 2.9, down on both a monthly and yearly basis. McIntosh noted that the state’s inventory of starter homes is particularly tight.
The months’ supply of inventory also dropped from the previous month and year in the Bay Area, falling to 1.9. The number of homes for sale declined from last August in all nine local counties, with Santa Clara, Alameda, San Francisco, San Mateo, and Contra Costa counties having the state’s most severe shortages.
Homes in the nine-county Bay Area left the market in an average of 15 days, five days fewer than they did in August 2016. Santa Clara County was California’s fastest-paced real estate market last month, with homes selling in an average of 9.5 days.