The San Francisco Bay Area housing market set yet more records during the month of September. Homes sold at the slowest pace seen in two decades...
The San Francisco Bay Area housing market set yet more records during the month of September. Homes sold at the slowest pace seen in two decades...
View Housing Market Watch RSS feedThe San Francisco Bay Area housing market set yet more records during the month of September. Homes sold at the slowest pace seen in two decades and foreclosure activity was higher than ever.
| County | Med. Price Sept 06 | Med. Price Sept 07 | % Chg |
|---|---|---|---|
| Alameda | $587,250 | $556,000 | -5.3% |
| Contra Costa | $550,000 | $551,250 | 0.2% |
| Marin | $797,000 | $810,000 | 1.6% |
| Napa | $610,000 | $544,250 | -10.8% |
| San Francisco | $759,000 | $773,500 | 1.9% |
| San Mateo | $760,000 | $760,000 | 0.0% |
| Santa Clara | $671,500 | $696,500 | 3.7% |
| Solano | $460,000 | $410,000 | -10.9% |
| Sonoma | $530,000 | $500,000 | -5.7% |
Source: DataQuick
Median home prices fell considerably in some parts of the Bay Area region in the month of September. The largest price declines were in Napa and Solano Counties, both of which experienced a decrease of nearly 11 percent. Price drops are being attributed to the failing mortgage market and to the rising rate of foreclosures.
| # Sold Sept 06 | # Sold Sept 07 | % Change |
|---|---|---|
| 8,374 | 5,014 | -40.1% |
| # Sold Aug 07 | # Sold Sept 07 | % Change |
|---|---|---|
| 7,299 | 5,014 | -31.3% |
Home sales in the Bay Area have been on a downward slide for the last 32 months. Sales fell 40.1 percent in a year over year comparison during the month of September and 31.3 percent compared to the previous month.
| County | Sold Sept 06 | Sold Sept 07 | % Chg |
|---|---|---|---|
| Alameda | 1,690 | 948 | -43.9% |
| Contra Costa | 1,784 | 916 | -48.7% |
| Marin | 292 | 197 | -32.5% |
| Napa | 129 | 68 | -47.3% |
| San Francisco | 567 | 469 | -17.3% |
| San Mateo | 738 | 486 | -34.1% |
| Santa Clara | 1,986 | 1,235 | -37.8% |
| Solano | 606 | 321 | -47.0% |
| Sonoma | 582 | 374 | -35.7% |
Source: DataQuick
During the month of September, Bay Area home sales fell to the lowest level seen in two decades. The largest declines occurred in Contra Costa, Napa, and Solano Counties.
| Area | 1 Bdr Rent Sept 06 | 1 Bdr Rent Sept 07 | % Change |
|---|---|---|---|
| Napa | $845 | $856 | 1.3% |
| Oakland-Fremont | $1,045 | $1,055 | 0.9% |
| San Francisco | $1,227 | $1,239 | 0.9% |
| San Jose-Sunnyvale | $1,059 | $1,068 | 0.8% |
| Area | 2 Bdr Rent Sept 06 | 2 Bdr Rent Sept 07 | % Change |
|---|---|---|---|
| Napa | $1,098 | $1,112 | 1.3% |
| Oakland-Fremont | $1,238 | $1,250 | 0.9% |
| San Francisco | $1,536 | $1,551 | 0.9% |
| San Jose-Sunnyvale | $1,273 | $1,284 | 0.8% |
| Area | 3 Bdr Rent Sept 06 | 3 Bdr Rent Sept 07 | % Change |
|---|---|---|---|
| Napa | $1,519 | $1,538 | 1.3% |
| Oakland-Fremont | $1,679 | $1,695 | 0.9% |
| San Francisco | $2,051 | $2,071 | 0.9% |
| San Jose-Sunnyvale | $1,831 | $1,846 | 0.8% |
Source: HUD
Fair market rents in the Bay Area did not change much between 2006 and 2007, but some rent increases have been reported, particularly in the San Francisco and San Jose areas. According to quarterly survey by RealFacts, rents have increased by as much as 12 percent over the last year in these two cities.
Across the nine-county Bay Area region, the average rent was up nine percent in the third quarter, rising from $1,411 to $1,539.
| County | Q3 2006 | Q3 2007 | % Chg |
|---|---|---|---|
| Alameda | 803 | 2,126 | 164.8% |
| Contra Costa | 1,012 | 3,216 | 217.8% |
| Marin | 89 | 172 | 93.3% |
| Napa | 43 | 163 | 279.1% |
| Santa Clara | 670 | 1,655 | 147.0% |
| San Francisco | 149 | 252 | 69.1% |
| San Mateo | 290 | 581 | 100.3% |
| Solano | 510 | 1,513 | 196.7% |
| Sonoma | 231 | 749 | 279.1% |
| Entire Bay Area | 3,797 | 10,427 | 174.6% |
Source: DataQuick
Foreclosure activity nearly doubled once again in the Bay Area during the third quarter of this year as compared to the same quarter last year. Sonoma, Napa, and Contra Costa Counties had the largest increases.
The advocacy group ACORN (Association of Community Organizations for Reform Now) is estimating that 4,800 of the subprime loans made to Bay Area borrowers during 2006 are likely to fall into foreclosure over the next couple of years. The cost to homeowners, lenders and Bay Area cities is estimated to be $1.5 billion.
| Total Foreclosures Q3 2006 | Total Foreclosures Q3 2007 | % Chg |
|---|---|---|
| 27,218 | 72,571 | 166.6% |
Source: DataQuick
A record number of California homeowners were in some stage of foreclosure during the last quarter. Since 1992, an average of 34,781 filings occurred on a quarterly basis. The current foreclosure rate is double that.
Approximately 50 percent of the state's foreclosure activity is concentrated in 293 of California's 1,465 zip codes. Merced, San Joaquin and Riverside Counties had the highest foreclosure rates in the third quarter, while San Francisco, Marin and San Mateo Counties had the lowest rates.
Clearly, the trouble has only just begun for the Bay Area. As more ARM loans reset in the coming months, foreclosure rates will continue to climb and the market will be flooded with more inventory that cannot be sold. This should mean that prices will continue to move downward.
Follow the links below to read previous housing reports for the San Francisco Bay Area:
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