Housing statistics for July 2013 Months of inventory shows the housing market is still alive and well with significant price increases and for the benefit of buyers a little more inventory is coming on the market although the supply is still very low.
In the 16 communities measured by CCAR/MLS in July the Average Sale Price for single family detached homes was up 23% compared to last July and Pending Sales were up 14%. Townhomes/Condos showed increases of 40% and 9% respectively.
For the last two months we have had more homes on the market than we had last year, but last year was also very low inventory. The number of homes for sale by the end of July was up 33% for SFH and 50% for the TH/C market, but this is still only 1.5 and 1.1 Months of Inventory
for sale because of strong Pending Sales activity over the last 30 days. The demand remains very active because of historically low interest rates,
pent-up demand, and the knowledge that the bottom of the market is long behind us as it was about 18 months ago.
A normal, balanced market is around 5.0 Months of Inventory so we have a long way to go to reach a balance. We are still in a strong seller’s market so this is one reason prices continue to go up. Part of the increase in Average Selling Price is a larger number of more expensive homes are selling, but about three-fourths of the increase is actual appreciation.
In the 27 communities measured for Months of Inventory the average is only 1.25 months of homes for sale. This is up 32% from last July and up 21% from June. April was the low for the year at 0.82 Months of Inventory.
For the nine Bay Area Counties DQNews.com shows for July median prices up over 33% and sales volume up 13% compared to last July. Distressed sales made up only 15% of the market compared to 40% last year. Absent buyers- mostly investors purchased 21% of all properties, down from 23% a year ago.
Monthly average market share back 13 years is 15%. All cash sales were 24% of the market from 28% last year. Monthly average market share back 25 years is 13%. In Danville, Alamo, San Ramon Blackhawk, & Walnut Creek SFH Average Selling Prices have approximately Doubled
in 15 years, average of almost 7% a year increase.
Months of Inventory: Months of Inventory 27 communities; CCAR/MLS stats 16 communities; DQNews.com 9 counties; & Average single family detached home selling prices back 30 years to 1983