Home prices in Solano County grew more year-over-year in July, than they did in the rest of the Bay Area, even as sales slump, a new real estate industry report shows.
The median price for a home in the Vallejo area in July was $405,000, up 8 percent from last yearâ€™s $375,000, according to CoreLogicâ€™s most recent report. Sales here during the same period, however, were down nearly 8 percent.
The number of homes sold fell almost everywhere in the Bay Area in July compared to June, though the Solano areaâ€™s decrease â€” at 12.5 percent â€” was the Bay Areaâ€™s shallowest. This areaâ€™s 1.3 percent median price increase month-over-month, was the steepest rise and one of only two metro areas where there was an increase. The other was Napaâ€™s .5 percent rise.
â€œHome prices in Vallejo and the rest of Solano County are still the most affordable in the Bay Area, even as they continue to rise,â€� Solano Association of Realtors President Linda Daraskavich said. â€œItâ€™s all about supply and demand, and we need more homes.â€�
In fact, homes sales in the Bay Area was the lowest for a July in six years, CoreLogic officials said.
New CoreLogic data shows a total of 7,534 new and resale houses and condominiums sold in Solano, Napa, Alameda, Contra Costa, Marin, Santa Clara, San Francisco, San Mateo, and Sonoma counties in July, down 17.3 percent compared to June and 2.6 percent compared to July 2016.
â€œThe San Francisco Bay Area posted modest year-over-year gains in home sales this May and June, but a tight inventory and waning affordability have taken a toll, and July 2017 sales fell to the lowest level for a JulyÂ in six years,â€� CoreLogic research analyst Andrew LePage said.
The median price paid for all homes sold in the San Francisco Bay Area in July was $758,000, down 1.6 percent compared to a record $770,500 in June and up slightly more than 9 percent compared to a year ago.
The median price has risen on a year-over-year basis, for 64 consecutive months â€” since April 2012, CoreLogic officials said.
â€œThe supply-demand imbalance has been the main driver of rising prices,â€� LePage said. â€œAlthough the regionâ€™s median sale price dipped in July 2017 below the all-time high of $770,500 set in June, it was still up 9.1 percent from a year earlier. So far this summer, and for most of this year, the median price has risen at a slightly higher growth rate than last year. The rise in mortgage interest rates over the past year exacerbates the affordability challenge home shoppers are currently wrestling with in one of the nationâ€™s priciest housing markets. While last monthâ€™s median price rose about 9 percent year over year, the mortgage payment â€” principal and interest â€” paid on that median-priced home increased about 16 percent.â€�
Government-insured Federal Housing Administration (FHA) loans accounted for slightly more than 8 percent of home purchase loans in the Bay Area in July, down from nearly 11 percent in June. Low-down-payment FHA loans accounted for a substantially higher share of mortgage loans in the more affordable stretches of the Bay Area, like Solano County, which had the highest FHA share in July at 18.4 percent, followed by Contra Costa County at 17.3 percent and Napa County at 9.7 percent, CoreLogic officials said.
Contact Rachel Raskin-Zrihen at (707) 553-6824.
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