I’m a little late in getting this out. I don’t always write about market updates because it’s not too interesting these days. Inventory is down, sale volume is down, and price creeps up that trend is going to continue. However, I was particularly interested in seeing how the market react to the Tax Cuts and Jobs Act of 2017. Are buyers giving up because of the elimination of homeownership incentives? Are investors ringing the cash registers to take advantage of the extra deductions? I felt like there’s more activity but I don’t want to make a claim without actual facts and numbers.
sales volume down 2.9% Year over year
The same trend is continuing like I imagined. We’re in a situation where sellers can’t sell because they have to face the same buying competition and removal of the incentives they had once before. Buyers also can’t buy because inventory is low and they’re getting outbid.
Inventory continues to decrease
San Francisco Bay Area the average inventory is 2.3 months, compared to 2.5 in January 2017. The lowest is in Santa Clara county with 1.9 month. Alameda is at 2.0, San Francisco and San Mateo County 2.2, Contra Costa County at 2.3. The biggest drops I see are actually in Napa and Sonoma County. One can safely assume this is related to the fire and not as many houses are listed for sale and probably won’t until the residents there can sort out the matter with insurance companies.
Backed by a strong job market leads to continue increase in prices
Statewide we’re seeing a 7.3% YoY increase. San Francisco Bay Area saw a 10.9% YoY increase with Santa Clara County and San Mateo County leading the way at 26.1% and 25.0% YoY increase, respectively. San Francisco County saw 6.4% increase, below the state average. Alameda County 11.3%, Contra Costa at 2.8%, and Marin County’ 14.6% to round out the rest of the Bay Area.
