The table below compares Q3 statistics across 5 years. Three charts further down we will discuss one of the dynamics behind the huge year-over-year increase in median house sales price. 

Median sales prices can rise because of increases in fair market value – i.e. buyers are paying more money for the same home (supply and demand) – and/or because buyers are purchasing larger, more expensive houses. Both dynamics are currently at play, but it is certain that affluent and very affluent buyers have made up a dramatically increasing percentage of the total market throughout the Bay Area. In San Mateo County, the average size of houses sold in Q3 jumped a whopping 11% year over year, which explains some of the enormous increase in median house sales price. 

7 Months after the Pandemic Struck

Median House & Condo Sales Price Trends by Quarter 

Median sales prices can rise because of increases in fair market value – i.e. buyers are paying more money for the same home (supply and demand) – and/or because buyers are purchasing larger, more expensive houses. Both dynamics are probably currently at play, but it is certain that affluent and very affluent buyers have made up a dramatically increasing percentage of the total market throughout the Bay Area. In Santa Clara County, the average size of houses sold in Q3 saw a large year-over-year jump.

Annual percentage changes in median house sales price: The 2020 YTD percentage will almost certainly change, one way or another, by the time full-year sales data is in. 

Median House Sales Price Trends by City & by San Jose Neighborhood

In September, we also updated our semi-annual Survey of Bay Area Markets.