January 2020 Report
As we move into 2020, the stock market continues with strength which is correlated to the robust home prices. However, 2020 is an election year which may cause some uncertainty for the Fall market. We anticipate a higher volume of listings this Spring as sellers seek to capture value on their properties. In 2019, the days on market (DOM) remained flat or increased depending on the city and neighborhood. There is more balance between supply and demand and thoughtful pricing is important to a successful sale. With median sales price remaining flat in 2019, we saw the first year since 2012 in which sales prices did not rise (see chart below). UC Berkeley economist, Ken Rosen, predicts Bay Area median prices to remain flat with a potential range of +/-2%.
Median sales prices are generalities and not exact measurements of changes in fair market value. They can be affected by a number of factors and are sometimes subject to anomalous fluctuations. This is especially true of very affluent communities - such as Atherton, Woodside and Portola Valley - that have relatively few sales across a very wide range of sales prices.
How they apply to any particular home is unknown without a specific comparative market analysis.
