FAIRFIELD — Solano County continues to ride a home-price wave, as the median price for a home sold in the county last month was the highest in 63 months, dating to June 2008. The supply of homes for sale continues to be tight.
According to the San Diego-based DataQuick real estate service, 648 Solano homes sold in August, with a median price of $277,500. That’s a 46.1 percent price bounce over a year ago and an 8.5 percent jump from July’s median price of $255,750. It was Solano’s 16th consecutive month with a year-over-year increase and was the biggest annual leap among the nine Bay Area counties.
The inventory of homes for sale continues to lag – the volume of sales was down 6.5 percent compared to 2012 – but there may be reason for optimism.
“It’s turning more toward the positive,” said Denise Kirchubel, a Realtor with Re/Max Gold Elite in Fairfield. “I think it’s going to be a sellers’ market for quite a while longer, in real estate terms – maybe a few more months. But the trend is toward higher inventory.”
Kirchubel said one factor in that increase is the addition by developers of new homes to the Multiple Listing Service. There were few major housing projects over the past five years, but some are starting to trickle in – particularly along Peabody Road.
“And the traditional inventory is seeing some improvement, too,” she said. “People are getting enough equity in their homes that it makes more sense to sell.”
Across the region, home prices increased by 31.7 percent over a year ago, although the price suffered a dip of 3.9 percent from July. There was also a 0.6 percent drop in total homes sold in the Bay Area.
“As the market pendulum swings back toward normal, trends will be affected by more mundane market factors such as interest rates, employment, economic growth, affordability, mortgage availability and how fast demand is generated and met,” said John Walsh, DataQuick’s president, in a press release. “The next few months are going to be interesting, especially when it comes to pricing trends.”
The last time the median price was this high was just before the start of the Great Recession, when prices plummeted. Within a year, the median was down to $185,000.
Statewide, DataQuick reported that 42,546 new and resale homes and condos sold last month, down 1.9 percent from July. The median price of $361,000 was down 0.6 percent.
Both measures, however, were up from August 2012, when sales totaled 41,280 and the median price was $281,000.
Reach Brad Stanhope at 427-6958 or email@example.com. Follow him on Twitter at www.twitter.com/bradstanhope.