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, often in more expensive communities. 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 demand in our region's market. 

The table below compares Q3 statistics across 4 years.

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. 

There has been a staggering increase in the sales of very expensive homes. This plays a significant role in pulling overall median sales prices up. 

Reduced supply + increased demand = a highly pressurized market. 

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

Thank you to our @compass Chief Market Analyst, Patrick Carlisle for his continued analysis and reports.