Summary: The arrival of fall doesn’t seem to be affecting the Peninsula real estate market at all, with prices continuing to rise while inventory levels remain at record lows. In this market, buyers need to be prepared for the fast pace and competitive landscape they will face, particularly in the lower price ranges where there is stiff competition among first time homebuyers.
Details: For single family homes, the median sale price hit a record high of $1,500,400 last month, up 10% from last year. The average percentage overbid is up from last month to 109.6%, creeping back up towards the record high of 110.2% we saw in August. The average days on market (DOM) is at the lowest we’ve seen in two years.
This market is growing at an incredible pace – homes are selling in 17 days on average, with a median of 12 days. This represents a 25% decrease from the same period last year. While new listings are down significantly from last month, they are virtually unchanged from the same period last year, likely due to the seasonal contraction in inventory as we move away from the high-volume months of summer. Sales are up very slightly compared with last year.
Looking at year-to-date inventory levels and sales compared with last year, there are about 5% fewer homes that have come on the market, with a small 1% increase in the number of sales. This means inventory is even tighter than it was last year. The current inventory of single family homes is at one month, down 35% from last year.
Condos and Townhomes show similar trends. The median sale price for hit a record high last month – $860,000 which is up 20% from October last year. Overbids are at near record highs – currently 106.4%. New listings for condos and townhouses are down about 7% compared to the same period last year, with sales unchanged. This is putting further pressure on the already limited inventory, which is now at 0.6 months. That represents a staggering 60% decrease in inventory levels compared with the same period last year. Median days on market is even lower than for single-family homes, at 11 days.