San JoseFor just a few months, it appeared the dashing Bay Space housing market was able to decelerate.
Brokers reported sluggish gross sales and longer market occasions. Patrons had only a few extra choices.
However any purchaser aid was short-lived — median sale costs for current Bay Space properties surged 4.9 p.c 12 months over 12 months in January, in accordance with a report launched Thursday from CoreLogic. The area’s highest-in-the-nation dwelling costs despatched many consumers to the sidelines, and general gross sales dropped 12.eight p.c, hitting lows not seen in a decade.
CoreLogic analyst Andrew LePage mentioned patrons delayed purchases as a result of inventory market volatility and uncertainty brought on by the federal government shutdown. The Bay Space had its lowest variety of January dwelling gross sales in 11 years, in accordance with CoreLogic.
“Adjustments in dwelling costs this 12 months will hinge largely on the path of mortgage charges,stock, jobs and incomes,” LePage mentioned.
However for households and people shopping for properties, the simmering market continued to bubble within the 9 county space, with median costs for current properties rising to $750,000 in January, a achieve of $45,000 from the identical time final 12 months.
Median sale costs for resale properties rose 1.9 p.c to $1.07 million in Santa Clara, 5.6 p.c to $565,000 in Contra Costa, 1 p.c to $767,750 in Alameda, and three.9 p.c to $1.29 million in San Francisco. Costs dropped barely in San Mateo County, the place the everyday dwelling bought for $1.33 million.
The Bay Space market has seen year-over-year beneficial properties each month since April 2012. The median sale worth peaked in Could at $935,000.
However the excessive costs in Santa Clara County — dwelling to tech giants and a booming financial system — dropped dwelling gross sales 18 p.c from the earlier 12 months. Even discount hunters stayed away from Contra Costa County, the place transactions fell 17 p.c.
Brokers say the marketplace for starter properties — within the Bay Space, round $1 million — stays sizzling. Patrons are being extra discerning for properties promoting round $2 million. However general, brokers report sturdy demand and brief housing provide continues because the native financial system surges.
“Is now a very good time?” mentioned Alameda agent Sophia Niu. “Within the Bay Space, now’s all the time a very good time.”
The market seemed to be slowing down in final quarter of 2018, Niu mentioned, with uncertainty within the inventory market and rising rates of interest. However the first two months of 2019 have been busy for Niu and different East Bay brokers, she mentioned.
Nui positioned a 4 bed room, 1,800 sq. foot single household dwelling in Alameda available on the market in January. Her purchasers anticipated a softer market than the 12 months earlier than. However after two open homes, the homeowners acquired a number of affords considerably above the $828,000 asking worth, Niu mentioned.
“All indications are that this 12 months goes to be actually sturdy,” she mentioned.
However not all segments of the market are hovering, brokers say. Properties above $2 million — widespread in Silicon Valley cities close to employment facilities — are sitting available on the market longer.
Michael Tkachuk, 42, moved from Luxembourg in September along with his spouse and 11-year-old son. He braced for prime costs within the Bay Space, however was keen to make the transfer for an government tech job and a very good faculties.
“We knew that it was costly,” mentioned Tkachuk, an government at a cybersecurity agency in Santa Clara. However by the top of July, he added, “the market type of cooled down.”
The noticed a perfect home with 5 bedrooms and a giant yard on a quiet road in Los Gatos and acquired beneath the $2.eight million asking worth. The college is nice and the neighborhood is full of redwoods.
His agent, Ramesh Rao of Cupertino, mentioned high-end gross sales have been slower, and clients have been extra savvy about checking costs.
“It’s a really attention-grabbing market in comparison with final 12 months,” mentioned Rao, whose purchasers embrace many within the tech business. Potential patrons are nonetheless filling up open homes, however are much less keen to make fast, all-cash affords.
“This time, individuals simply look,” Rao mentioned. “Patrons are very cautious.”