The May median’s 20.1 percent annual gain reflects several factors, including the decline in foreclosure resales, price stability and modest price pressure in some areas, and the shift toward more high-end sales. Activity has picked up in the higher-cost areas in part because distress has increased over the last year and sellers have become more motivated and realistic.
Viewed another way, zip codes in the top one-third of the Bay Area market, based on their historical prices, accounted for 35.3 percent of existing single-family house sales last month – the highest in two years. Last month’s level was up from 31.6 percent in April and 27.2 percent a year ago. Over the past decade, the top third of the market averaged 32.1 percent of total regional sales, while the low point was 17.9 percent of sales in January 2009 and the high point was 43.5 percent in June 2007, just before the credit crisis began.
Case-Shiller is a quality adjusted, repeat sales index so it shouldn't be affected by this change in the neighborhood mix of sales, yet it still shows a huge change that parallels the median.
Zillow and Corelogic have other quality-adjusted price indices, and both show San Francisco prices are up about 6% over the past 12 months. That sounds far more realistic, and consistent what Dataquick is saying above.
It makes me wonder about the accuracy of the Case-Shiller index which I had thought was the best, and wished were available in the Valley. Maybe Zillow and CoreLogic are better indices, and they are available in the Valley.
In Sacramento, Zillow says home values are down 4.1% over 12 months, and CoreLogic says a 0.2% decline; but the median price is reported to be up 6% because of similar changes in the mix - more sales in higher priced areas and fewer foreclosure sales.