Home values continued to recover from the dip at the beginning of the year. The median price of a sold home increased to $1.265 million in April, an increase of more than 5%. Since the end of 2022, the median price has recovered by approximately 19%. The strongest price increases in April occurred in Santa Cruz County at 13%, Marin County at 10% and Contra Costa County with a 9% gain.
The spring buying season has generated some early signs of improvement in the SF Bay Area. Buyers are adjusting to higher mortgage rates and the drop in home prices in the last year have helped improve affordability. In fact, the drop in pricing means that the monthly mortgage payment at current rates for a median-priced home is less than the payment for the median-priced home one year ago. The greater affordability will help sales in lower pricing tiers as well as spur additional trade-up purchases at the higher end. Overall, the growing buyer demand will also prompt additional competition, leading to more homes likely selling above the list price. Sales volume may fluctuate throughout the year, but overall buyer demand should improve.