Buy.Sell.Stay. June 2016 Market Report South County Gilroy, Morgan Hill
Š 2016 Intero Real Estate Services, Inc., a Berkshire Hathaway Affiliate and wholly owned subsidiary of HomeServices of America, Inc. All rights reserve. The logo is a registered trademark of Intero Real Estate Services, Inc. Information deemed reliable but not guaranteed. This is not intended as a solicitation if you are listed with another broker. Data Provided by Trendgraphix July 2016
Executive Insights The Summer Heat is Turning Up Summer is full of images of friends, family and fun. In regards to the real estate market, summer is traditionally the time of year that sees a huge level of activity, especially in the Bay Area. In June 2016, this tradition of increased summer housing activity continued and is showing no sign of cooling off any time soon. Picking up where the month of May left off, for-sale listings were up in every part of the Bay Area except San Francisco. In most areas, listings were up double-digit percentages as sellers were putting their houses on the market in droves. These increases are considerably lower than we saw in April when the summer-selling season was ramping up, but they’re significantly more than we saw last month. Even with the increased level of listings, we’re still smack dab in the middle of a seller’s market. June saw the most properties sold in the last three months. In fact there was 24.15% more Bay Area homes sold in June (2760) then there was in April (2223). This is keeping prices high and drying up inventory very quickly. It will be interesting to see if this trend continues into the later summer months of July and August. Even with this seller’s market producing closings at a steady clip, we did see an interesting move last month in relation to the days on market (DOM) for sellers. We saw a neutral trend in the DOM for six of the nine regions of the Bay Area with several area’s DOM up by 2837% month-over-month. Now these numbers may be inflated due to an ultra-competitive market in May, but it’s something we’ll be keeping an eye on as listings continue to increase across the region. So June showed us that sellers are still in control of Bay Area real estate. A strong job market and more buyers than listings is keeping demand high and still getting sellers multiple offers at over asking price. Will this trend continue? More than likely it will, at least through the end of summer. Beyond that will be interesting as interest rates continue to stay low through the end of the year and we get closer to a change in the White House. We’ll keep you informed with our take and hopefully provide you with information that can help in your buying or selling process.
Market Highlights South County
Total Homes for Sale
206
Luxury Homes for Sale*
7
*Homes for sale above $3 million.
Total Homes Sold
Average Days on Market
Average List Price
Average Sold Price
105 $1,154,000
34
$818,000
Inventory South County
Total Number Of Homes:
For Sale
Sold
206 184 109
105
162
16-May
16-Jun
65
64
81 67
50
123
112 91 15-Oct
89
89 15-Sep
65
90 15-Aug
103
143
155
182
178
169 116
157 112
153 105
100
118
150
147
200
198
250
16-Jan
16-Feb
16-Mar
0 15-Apr
15-May
15-Jun
15-Jul
15-Nov
15-Dec
16-Apr
It is a Seller’s Market Property Sales (Sold) June property sales were 105, down 6.2% from 112 in June of 2015 and 3.7% lower than the 109 sales last month. Current Inventory (For Sale) Versus last year, the total number of homes available this month is higher by 49 units of 31.2%. This year’s bigger inventory means that buyers who waited to buy may have bigger selection to choose from. The number of current inventory is up 12% compared to the previous month. Property Under Contract (Pended) There was an increase of 26.5% in the pended properties in June, with 124 properties versus 98 last month. This month’s pended property sales were 37.8% higher than at this time last year.
Inventory By The Numbers Home Price Range
Homes For Sale
Year Over Year % Difference
< $500K
7
-12.5%
$500K $1M
114
46.2%
$1M - $3M
78
14.7%
$3M - $5M
5
150%
$5M - $10M
2
100%
$10M +
0
N/A
Pricing South County
Average Prices in $,000:
1400
$1,259 $1,251
1200
$1,180
$1,129 $1,031 $1,036
$1,087
For Sale Price
$1,128
$1,161
Sold Price
$1,195 $1,218 $1,192
$1,161 $1,158 $1,154
1000 800 $783
600
$763
$817
$879 $782
$818
$837
15-Sep
15-Oct
$776
$821
$830
15-Dec
16-Jan
$752
$784
$805
$819
16-Mar
16-Apr
16-May
$818
400 200 0 15-Apr
15-May
15-Jun
15-Jul
15-Aug
15-Nov
The Average For Sale Price is Depreciating The Average For Sale Price in June was $1,154,000, down 2.2% from $1,180,000 in June of 2015 and down 0.3% from $1,158,000 last month. The Average Sold Price is Neutral The Average Sold Price in June was $818,000, up 0.1% from $817,000 in June of 2015 and down 0.1% from $819,000 last month. The Median Sold Price is Appreciating The Median Sold Price in June was $759,000, up 4.1% from $729,000 in June of 2015 and up 7.2% from $708,000 last month.
16-Feb
16-Jun
Pricing By The Numbers
Average Price Per Square Foot.
$367
1.4%
Month over Month
On The Market South County
Average Days On Market 60 52 47
50 42 37
40
37
32
41 37
30
30
30
37
34
28
29
27
20
10 15-Apr
15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
15-Dec
16-Jan
16-Feb
16-Mar
16-Apr
16-May
16-Jun
0
The Days on Market Shows Neutral Trend The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyerâ&#x20AC;&#x2122;s market, a downward trend indicates a move towards more of a Sellerâ&#x20AC;&#x2122;s market. The DOM for June 2016 was 34, up 17.2% from 29 days last month and down 8.1% from 37 days in June of last year.
DOM By The Numbers Home Price Range
Days on Market
Year Over Year % Difference
< $500K
71
62%
$500K $1M
33
15%
$1M - $3M
30
-150%
$3M - $5M
0
N/A
$5M - $10M
0
N/A
$10M +
0
N/A