Big rebound in market activity continues; median house sales price hits new quarterly high. Despite the ongoing health and economic crisis precipitated by COVID-19, the real estate market made a dramatic recovery from the steep declines in March and April. The median house sales price hit a new high in Q2, and around the Bay Area, high-end homes, in particular, have seen very strong demand.
The first chart below illustrates the big rebound in buyer demand, as the number of listings accepting offers in June 2020 rose back up to normal on a year-over-year basis. Of course, closed-sales volume – a lagging indicator – was hammered in Q2 by shelter in place.
The large increase in sales activity in higher price segments is reflected in these next two charts.
2020 began with low levels of inventory, and, though increasing significantly since the April drop, remains a bit lower on a year-over-year basis.
Area house values, as measured by both median sales price and average dollar per square foot value, hit new highs in Q2.
Median house sales price trends by city: Remember that median sales price is not a perfect indicator of changes in fair market value, as it can be affected by a number of factors. Fluctuations are especially common in markets with relatively low sales volumes across a wide range of sales prices, such as in Piedmont and Kensington.