Quarter one closed out with a median sales price of 1.455 for single family homes and 900k for condos and townhomes, up 29% from the first quarter of 2017, and 12.5% from the fourth quarter 2017.
Palo Alto leads the pack with an average price of 4.35. Areas around South San Jose, Gilroy, East Foothills, Morgan Hill can still be purchase for under a million dollars.
Active inventory, defined as available homes for sale at any given time continues to be the challenge with our market. Average active for the first quarter as well as closed properties were down 31% from the same quarter 2017, mainly due to the inventory restrictions.
Sales to list price ratio topped out at an average of 113.3% for the quarter, up from 104.5% in the same quarter 2017.
Palo Alto again leads the pack with getting up to 20%-40% above list price. Morgan Hill and Gilroy comes in at a more moderate 2% to 5% above list.
The Bay Area economy continues to fuel these home prices with 11,900 new jobs in January 2018, making up 1/3 of the statewide employment increase. Net Bay Area population increased by 17,000 people in 2017.
Net foreign immigration to the Bay Area was a positive 22,000. Domestic migration was a negative 22,000 which now brings our foreign born population to almost 40%, which is three times the countries average. This is fueled in part by companies such as Google, Apple, Adobe, and Facebook in rapid hire mode.
Job growth and lack of inventory will continue to put upward pressure on the real estate market.
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