Pleasanton, California (EastBayDaily) — With far more potential homebuyers than there were homes on the market, competitively priced homes in all price ranges continued to draw multiple offers and nudge home prices higher during the third quarter, according to an analysis of MLS data by the research division of Better Homes and Gardens Mason-McDuffie Real Estate.
Demand for homes priced above $1 million and multiple offers over the asking price combined to boost the median price of a home sold in San Francisco to $926,728 in the third quarter, a 13 percent increase from $818,730 a year ago. Even so, the third quarter median price was 7 percent lower than it was in the second quarter, when it rose to $999,666. The decline was attributed to a change in the number and mix of homes sold in Districts 7 (Marina/Pacific Heights) and 8 (Nob Hill/Russian Hill/Telegraph Hill) from one quarter to the next.
A continuing shortage of homes on the market was behind the year-over-year median price increase. The inventory of existing, single-family detached homes listed for sale on Sept. 30, 2012 – the final day of the third quarter – stood at 362, down 52 percent from the 751 single-family detached homes available for purchase on the same date a year ago. Homes that were on the market sold quickly. The average number of days a home was on the market before receiving a contract to purchase was 37 days in the third quarter, down from 41 days in the second quarter and 54 days a year ago.
Tighter inventory also meant lower sales volume. Citywide, 624 existing, single-family detached homes changed hands in the third quarter, almost equal to the 623 homes sold in the third quarter of 2011 but down 11 percent from 700 detached homes sold in the second quarter.
District 10 (Bayview/Excelsior/Visitacion Valley) set the pace for the quarter with 168 homes sold, a 15 percent increase from the previous quarter and up 4 percent from a year ago. Among neighborhoods with 50 or more home sales, District 5 (Glen Park/Haight Ashbury/Noe Valley) reported a 23 percent year-over-year increase, while District 4 (Diamond Heights/Mt. Davidson/West Portal) reported a 13 percent improvement.
Districts 6 (Hayes Valley/Western Addition), 7 and 8 reported significant increases in the median sales price but recorded only a handful of sales between them. Sales were flat compared with a year ago in District 1 (Richmond), but the median sales price increased 9 percent for the quarter and 23 percent from the year-ago period. District 5 also reported a 9 percent quarterly improvement in its median sales price and a 13 percent annualized increase.
According to James Caldwell, San Francisco Manager, Better Homes and Gardens Mason-McDuffie, “With the inventory of homes for sale likely to remain extremely tight through the end of the year, some neighborhoods may continue to experience modest price increases.” Accordingly, homeowners with equity who are prepared to price their home for the market and can offer a home that is ready to occupy may wish to seek the assistance of an experienced REALTOR®, who can help evaluate current market opportunities. Homebuyers, meanwhile, must be ready to act on a moment’s notice – and to demonstrate the tenacity it takes to compete against multiple and all-cash offers. Again, an experienced REALTOR® with local-market expertise can make all the difference.
Click Here to View Our Third Quarter 2012 Housing Market Survey
About Better Homes and Gardens Mason-McDuffie Real Estate
Our heritage began with the founding of Mason-McDuffie Real Estate in 1887. The company is the 19th largest residential brokerage company in the nation, providing comprehensive solutions to home buyers and sellers. The company handled 7,790 transactions in 2011, generating $2.94 billion in sales. The Better Homes and Gardens Mason-McDuffie Real Estate Network is independently owned and operated and includes joint ventures with partners Highland Partners in Piedmont and Montclair, Wine Country Group in the North Bay, and Tri-Valley Realty in Pleasanton-Hopyard and Ruby Hill. The organization is comprised of more than 1,200 sales professionals in 29 offices. For more information, go to http://www.bhghome.com