Third Quarter 2011 Pacific Union Real Estate Report
Posted by Lisa Norman — October 24, 2011
The Pacific Union International Q3 2011 real estate market report offers home buyers and sellers comprehensive information on volume, number of homes sold, average days on market, and price.
Highlights from each county’s report can be found below. Click the magazine to view the rest of the online Q3 Market Report.
Sonoma For the first time in years there is more affordable housing available in the Sonoma County real estate market allowing first time home buyers to live in this gorgeous region of wine country. However, it is interesting to note that Sonoma homes in the $2,000,000 – $4,000,000 price range has actually had an increased number of sales YTD in 2011 over 2010. With a majority of these homes being purchased through financing options, we see an indication that there is still confidence in real estate investment by high net worth buyers and financing available to those that can qualify.
Marin Time on the market is clearly not a seller’s friend – statistics from the MLS confirm that homes on the market for over 90 days sold for 89% off their original listing price. This means -$110,000 under original asking price on a $1 million home. Conversely, homes that sell in less than thirty (30) days on the market enjoy a sale price of nearly 98% of the original listing price. Pricing decisions in the Marin real estate market are paramount to achieving a timely sale and maximizing seller’s proceeds.
San Francisco “Precision pricing” in the San Francisco real estate market is demonstrably paramount in achieving not only a timely sale, but also in maximizing Seller proceeds. For their part, Buyers have become increasingly educated on and conversant with recent transactional trends, including new inventory (which, by the way, is substantially below 2010 YTD figures) and recent sales. We find Buyers to be generally patient, focused, value-sensitive and, ultimately, unwilling to make offers on overpriced listings — which is to say qualified Buyers concentrate on the best-priced inventory. They approach the primary home market in terms of investing in a home vs. speculating on an appreciating housing market.
Napa As of August 31, 2011, the Napa County unemployment index was 8.8% v the California average of 11.9%. This means 91.2% of all those looking for work in Napa County are employed. We recognize a market recovery will be led by quality job creation, which will be followed by an increase in our clients’ confidence.
Contra Costa It is our feeling that Hwy 24/680 corridor housing prices will remain fairly stable for the next 15 – 18 months. Statistics from the MLS confirm that though inventory of homes for sale in Alamo and Danville is high, only 25% of those homes are going into contract, and in those areas the number of closed transactions is the lowest since April of this year. September’s average sales price in Alamo and Danville dropped 3%.