McGuire Real Estate Quarterly Report | Second Quarter 2017 by McGuire Real Estate

2017

Table of Contents Letter from the President

Page 4

Regional Market Trends

Page 5

The Luxury Market

Page 8

San Francisco County

Page 12

San Mateo County

Page 16

Marin County

Page 18

Napa County

Page 20

Sonoma County

Page 22

Alameda County

Page 24

Contra Costa County

Page 26

Counties Represented

Napa Sonoma Marin Contra Costa San Francisco

Alameda

San Mateo

* Data is sourced from the San Francisco Multiple Listing Service, the East Bay Region District Listing Service, Bay Area Real Estate Information Services, and MLS Listings (MLS). MLS data is provided by individual listing brokerages. These are sources we deem reliable. We have no reason to doubt their accuracy, but we do not guarantee them. Past performance does not guarantee future performance

Page 3 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

Letter from the President

Charles Moore President and CEO

A Steady, Stable, and Strong Second Quarter for Bay Area Real Estate Average sales prices in the Bay Area followed the first quarter trend of remaining steady, but also proved to be a bit stronger as we moved into the second quarter of the year, and what’s typically our busier spring selling season. We didn’t see double-digit hikes that had become prevalent in recent quarters, but we did record a healthy 7 percent jump in the overall average sales from the previous year and a 14 percent gain from the previous quarter.

“We

An article published in The Mercury News in July stated that, “Bay Area home prices have continued their stratospheric surge, as the low housing supply combined with intense demand last month to further heat up the market.” Additionally, all four regions of the Bay Area posted record high average sales prices in Q2, while realtor.com’s hotness index pegged the San Francisco-Oakland-Hayward area as the second did see buyers finding more room to negotiate this hottest in the country.

quarter, taking advantage of early price reductions or

It’s worth noting however, that while the press reports on the higher prices, apparently frenetic pace and properties that had sat idle on the market for too many days.” the overbidding—the numbers can be deceiving at times—as certain areas and price points do offer a more balanced market than it may appear on the surface. We did see buyers finding more room to negotiate this quarter, taking advantage of early price reductions or properties that had sat idle on the market for too many days. However, the continued record breaking prices happening across many parts of the Bay Area did encourage more sellers to jump into the market in Q2, and many got more than their initial asking price. For example, singlefamily homes in San Francisco that required no price change sold, on average, at 18 percent over asking. This same trend occurred in both Alameda and San Mateo Counties, but at an over-asking rate of 9 percent for properties priced just right to begin with. We saw a much higher sales volume numbers in Q2 than we did at the start of the year in Q1, which is to be expected given the seasonality of the market. The 60 percent increase in overall sales volume quarter-over-quarter, across all seven Bay Area counties that we serve, is due in part to the fact that more people who may have been waiting on the sidelines during the holidays are now jumping into the spring selling season. That said, a majority of the Bay Area has been dealing with some degree of limited inventory issues over the past few years, further explaining why Q2’s overall sales volume hovered at only a 2 percent gain year-over-year. That rate depicts a much more accurate representation of the sales activity when looking at each region and county individually, as volume in the East Bay is going to be much higher than San Francisco’s, given the limited number of available homes and condominiums on the market. The Bay Area’s market has been consistently competitive with rising average sales prices and low inventory continuing to be a factor. Combined with the fact that Q3 has typically been strong over the past 10 years, it wouldn’t be a stretch to suggest that this trend will continue into this next quarter.

Download the complete Quarterly Report at: mcguire.com/quarterly_report * Data is sourced from the San Francisco Multiple Listing Service, the East Bay Region District Listing Service, Bay Area Real Estate Information Services, and MLS Listings (MLS). MLS data is provided by individual listing brokerages. These are sources we deem reliable. We have no reason to doubt their accuracy, but we do not guarantee them. Past performance does not guarantee future performance

Page 4 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

Regional Market Trends After a slow start to the year it was not surprising the housing market in the second quarter was robust across the seven Bay Area counties that we serve resulting in record-setting prices in almost every area, and an overall average sales price of $1,115,975. Adding to this was a large uptick in overall sales volume totaling 10,017 in Q2, up 60 percent from Q1, and a slight 2 percent jump from the previous year. Bay Area homes also began to move a bit quicker than in quarters past with the average days on the market (DOM) coming in at 26, a pace that was 6 percent quicker than Q2 2016. The Mid-Peninsula led the way with the largest average sales price gain for Q2 2017, with its $1.797 million average up 3 percent yearover-year and 15 percent quarter-over-quarter. There were a total of 1,301 home sales recorded in San Mateo County this quarter, with the most notable hike occurring in the $1-2 million range. That particular price range saw a 14 percent increase in overall sales volume compared to where it stood during this same time last year. The East Bay’s average sales price also jumped 8 percent from the previous year, clocking in at $905,374 for Q2 2017, and nearly a 14 percent increase from Q1. It’s no surprise that the region’s attractive range of price points and available inventory continued to lure in buyers—recording the largest number of total sales for the quarter at 5,853 closings. Sales volume for homes priced in the $500,000 to $1 million category experienced a 4 percent rise from the previous year. Both Alameda County and Contra Costa County posted its highest average sales price on record in Q2 at $980,295 and $837,130, respectively. Of all four regions of the Bay Area, San Francisco’s single-family home sector had the highest average sales price in Q2 at $1.896 million. This figure was nearly 8 percent higher than where it stood in both the previous year and previous quarter. San Francisco’s condominium sector also experienced a 6 percent gain in average sales price from Q2 2016, coming in at $1.334 million this quarter. Both markets displayed healthy year-over-year sales volume gains of 6 and 11 percent, respectively—as well as reduced average DOM times. The North Bay posted an average sales price of $1.050 million in Q2, up just shy of 5 percent from the $1.001 million recorded in Q2 2016—with Marin, Napa, and Sonoma County all experiencing year-over-year gains. In Napa County, the average sales price of $914,645 was up 3 percent from the previous year. Marin County, where inventory has been minimal over the past few years, posted a record-setting $1.658 million average sales price for a 4 percent gain year-over-year. Sonoma County’s average sales price of $740,338 was the largest jump from Q2 2016 at 5 percent.

All REGIONS

$2,000

Average Sales Price

Days on Market

Average Price Per Sq. Ft.

Quantity

Q2 2017

$1,115,975

$898

10017

change

14%

-32%

73%

60%

Q1 2017

$978,609

$518

6260

Q2 2017

$1,115,975

$898

10017

change

-6%

67%

Q2 2016

$1,046,592

$537

9850

Average Sales Price Five Years/Quarter (in thousands)

$1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 0 Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

East Bay

North Bay

Mid-Peninsula

San Francisco

Page 5 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

Regional Market Share The Bay Area netted $11.178 billion in total sales this quarter for its 10,017 total number of homes sold. The East Bay provided 58 percent of all sales and 47 percent of the cash share. The North Bay claimed 22 percent of all sales and 21 percent of total cash share. The Mid-Peninsula contributed 13 percent of all sales and 21 percent of total cash share. San Francisco added 6 percent of all sales and 11 percent of total cash share. None of these numbers were abnormal, although the East Bay continues to lead the way in both the number of units sold and overall cash share for the Bay Area.

7+13+2258A 11+21+47A Market Share by Unit

Market Share by Volume

San Francisco 6%

San Francisco 11%

Mid-Peninsula 13%

Mid-Peninsula 21%

North Bay 22%

North Bay 21%

East Bay 58%

East Bay 47%

Page 6 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

Quantity Sold by Price Single-Family Homes North Bay: 2,233 Marin, Napa, Sonoma

East Bay: 5,853 Contra Costa, Alameda

San Francisco: 630

> $5,000,000 < $4,000,000

Mid-Peninsula: 1,301

< $3,000,000 < $2,000,000 < $1,000,000 > $1,000,000

Page 7 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

The Luxury Market The strongest luxury market in Q2 was San Francisco, which was buoyed by an eye-popping $40-million home sale in Pacific Heights. This sale impacted the average sales price pushing it to the highest in the luxury market at $5.506 million, a 15 percent hike over last quarter’s $4.769 million and a 12 percent gain over the $4.912 million posted in the same quarter a year ago. In total, there were 63 luxury homes that sold this quarter in San Francisco, resulting in a 3 percent gain from Q2 2016. The average luxury home sold in 38 days in Q2 2017. The Mid-Peninsula luxury market’s $4.961 million average sales price was the second highest of all four regions. The average sales price here rose 26 percent from the previous quarter, demonstrating the seasonal uptick in market activity and interest that we’ve come to expect at the start of spring. However, the 6 percent decrease in average sales price on a year-over-year basis, suggests that this notable upper end market experienced a slight cool down during Q2 2017. The 131 total number of homes sold this quarter was just 2 percent above last year’s second quarter benchmark. Interestingly enough though, the average 37 DOM for Mid-Peninsula luxury homes was the faster rate of all regions — moving 13 percent faster than a year prior. While the East Bay may have the lowest average sales price of all luxury markets, it did have the highest number of total sales in Q2 2017. At $1.988 million, the East Bay’s average luxury sales price was a 4 percent gain from the previous year. The 586 homes sold in Q2 was up 56 percent from the 376 homes sold in Q1, but was only up 1 percent compared to a year prior. That, combined with an average 24 DOM this quarter, made for a stable luxury market for both buyers and sellers in the East Bay. The North Bay’s $3.061 million average sales price was up 5 percent from the previous quarter, but was down slightly from the previous year’s benchmark of $3.12 million. Naturally, Q2 was far busier in the total number of luxury homes sold than what occurred in Q1 2017, the quarter’s total of 224 homes sold still showed little change from Q2 2016. The average luxury home in the North Bay sold after spending 54 DOM — the highest average of all upper end markets — and a seemingly more common trend due to the fact that the region tends to appeal a more specific and limited buyer pool, who’re in search of such expansive properties, vineyard estates, and/or vast acres of land.

Page 8 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

SAN FRANCISCO Average Sales Price

Quantity

Days on Market

Average Price Per Sq. Ft.

Q2 2017

$5,506,756

$1,309

change

15%

40%

12%

Q1 2017

$4,769,467

$1,164

Q2 2017

$5,506,756

$1,309

change

12%

-5%

Q2 2016

$4,912,759

$1,295

Average Sales Price

Quantity

Days on Market

Average Price Per Sq. Ft.

Q2 2017

$4,961,545

131

$1,252

change

26%

1663%

19%

Q1 2017

$3,948,458

$1,178

Q2 2017

$4,961,545

131

$1,252

change

-6%

13%

Q2 2016

$5,283,936

126

$1,223

Average Sales Price

Quantity

Days on Market

Average Price Per Sq. Ft.

Q2 2017

$3,061,600

224

$975

change

60%

-51%

14%

Q1 2017

$2,903,692

140

111

$855

Q2 2017

$3,061,600

224

$975

change

-2%

-1%

Q2 2016

$3,120,985

227

$938

Average Sales Price

Quantity

Days on Market

Average Price Per Sq. Ft.

Q2 2017

$1,988,369

586

$602

change

10%

56%

-50%

Q1 2017

$1,807,935

376

$568

Q2 2017

$1,988,369

586

$602

change

-4%

Q2 2016

$1,911,870

580

$572

MID-PENINSULA

NORTH BAY

EAST BAY

Page 9 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

Bay Area Luxury Market Share The Mid-Peninsula continued its trend to lead the luxury market in sales volume at 35 percent and cash share at 38 percent during the second quarter of 2017. San Francisco accounted for 18 percent of all sales and 21 percent of cash share. The East Bay and the North Bay were the most common figures in terms of recent trends contributed the same amounts â&#x20AC;&#x201D; 22 percent of all sales and 22 percent of cash share. In all, there were 1,004 luxury homes sold across the Bay Areaâ&#x20AC;&#x2122;s seven counties that we serve.

20+37+2122A 19+36+2322A

Market Share by Volume

Market Share by Unit

San Francisco 21%

San Francisco 18%

Mid-Peninsula 38%

Mid-Peninsula 35%

North Bay 22%

East Bay 22%

Page 10 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

Sales Trends Luxury Homes

Price Range As a Percent of Sales $0-$500K

$500K-$1M

$1M-$2M

Price Per Square Foot

$2M-$3M

$3M-$5M

> $1,000/sqft >= $1,000/sqft >= $900/sqft

$5M+

>= $700/sqft >= $500/sqft

San Francisco Single-Family Homes

Q2 2017 Q1 2017 Q2 2016

< $500/sqft

20%

40%

60%

80%

100%

=190 +0 540 + 160 + 70 + 30+ =280 +0 460 + 130 + 90 + 30+ =230 +0 530 + 130 + 70 + 30+

19%

29%

55%

23%

16%

46%

13%

54%

13%

Mid-Peninsula 0%

Q2 2017 Q1 2017 Q2 2016

20%

40%

60%

80%

100%

=240 +0 +515150 + +6030+ =10350 + 440 + 120 + 60 + 20+ =310 +0 480 + 110 + 60 + 30+

24%

52%

15%

35%

31%

44%

12%

48%

11%

North Bay 0%

Q2 2017 Q1 2017 Q2 2016

20%

40%

60%

80%

100%

=140+512240 + 60 + 30+10+ =190540 + 190 + 40+20+10+ =200+510200 + +5020+10+

14%

19%

52%

24%

55%

20%

51%

19% 4%

20%

3% 1% 2% 1% 2% 1%

East Bay 0%

Q2 2017 Q1 2017 Q2 2016

20%

40%

60%

80%

100%

=170+480290 + 30+10+10+ =270490 + +21020+3+2 =250490 + 240 + 20+4+1 17%

50%

27%

25%

49%

29%

3% .38% .03%

21%

2% .37% 0.05%

24%

2% .44% 0.03%

Page 11 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

San Francisco County Single-Family Homes A record breaking $40-million sale of a home in Pacific Heights helped pump up San Francisco’s average sales price to a record setting $1.896 million in the second quarter — its highest peak in market history — and an 8 percent increase over the $1.761 million posted in both Q1 2017 and Q2 2016. Inventory moved more quickly this quarter with the city’s 630 total number of homes sold being up 3 percent from the previous year, and selling in an average of 26 DOM which was also slightly ahead of Q2 2016. As San Francisco’s housing story counties, Q2 was another quarter where many eager buyers were quick to snap up the properties available to them in this market.

SAN FRANCISCO - SFH Average Sales Price

Days on Market

Average Price Per Sq. Ft.

Q2 2017

$1,896,895

$928

change

-27%

Q1 2017

$1,761,226

$877

Q2 2017

$1,896,895

$928

change

-9%

Q2 2016

$1,761,835

$873

Page 12 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

6962+ 68+ 49+ 73+ 67+ 67+ 45+ 59+ 60+ 65+ 40+ 61+ 57+ 62+ 35+ 61+ 54+ 61+ 38+ 63+ Quantity Sold — Five Years/Quarter

700 600 500 400 300 200 100 0

Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

$1,800 $1,700 $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900

57+5264+5868+6568+7077+7077+8590+7582+8488+8090+8895 Average Sales Price Five Years/Quarter (in thousands)

Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

Sales Price Change

Sellers aggressively tested the market’s ceiling this quarter and for some the risk played out quite favorably. Those who required no price change at all netted 18 percent on top of initial list price — the highest upward change amongst all seven counties. On the flipside of that equation, sellers who also tested the market ended up seeing a 9 percent drop on initial list price. without price change

with price change

Q2 2017

Sales

18%

-9%

Q2 2016

15%

-11%

Average Sales Price by Neighborhood - The Top 10

With a $40 million sale and another at $13.9 million in Pacific Heights, there’s no question this neighborhood led the way during the second quarter of this year. As expected, it also had an impact on its average sales price of $9.820 million which resulted in a 68 percent spike from the previous quarter.

Neighborhood

Q2 2017

Q2 2016

change

Pacific Heights

$9,820,455

$5,829,400

68%

Presidio Heights

$8,437,500

$8,021,143

Cow Hollow

$5,674,667

$3,775,000

50%

Cole Valley/Parnassus Hgts

$3,749,437

$2,620,000

43%

Lower Pacific Heights

$3,685,000

$3,637,500

Sea Cliff

$3,412,500

$2,875,000

19%

Corona Heights

$3,337,500

$2,152,857

55%

< $700/sqft

Buena Vista/Ashbury Hgts

$3,325,000

$2,447,857

36%

< $500/sqft

Telegraph Hill

$3,275,000

$3,170,000

St. Francis Wood

$3,233,833

$3,175,000

San Francisco Single-Family Home Sales Price by Square Foot > $1000/sqft < $1000/sqft < $900/sqft

Page 13 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

San Francisco County Condominiums San Franciscoâ&#x20AC;&#x2122;s condominium market continued to remain strong in the second quarter with its average $1.33 million sales price setting a record as the highest in its history. The $1.33 price was 6 percent above the year-over-year price of $1.26 million. This also marked the fifteenth consecutive quarter in which city units have averaged more than $1 million, indicating a prolonged pattern of both predictability and strength. The second quarter has proven to be a performer and this trend continued with 659 sales, up 11 percent year-over-year. The average 33 DOM was also an improvement from the 34 in Q2 of last year.

SAN FRANCISCO - CONDOMINIUMS Average Sales Price

Days on Market

Average Price Per Sq. Ft.

Q2 2017

$1,334,704

$1,077

change

-12%

Q1 2017

$1,299,971

$1,043

Q2 2017

$1,334,704

$1,077

change

-2%

Q2 2016

$1,264,763

$1,053

Page 14 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

6966+ 58+ 50+ 75+ 69+ 66+ 53+ 71+ 61+ 59+ 46+ 65+ 51+ 59+ 43+ 59+ 56+ 60+ 47+ 66+ Quantity Sold — Five Years/Quarter

700 600 500 400 300 200 100 0

38+41 +46 +5049+5152+5854+5561+6260+6162+6362+ 63+67 Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

$1,300 $1,200 $1,100 $1,000 $900 $800 $700

Average Sales Price Five Years/Quarter (in thousands)

Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

Sales Price Change

The stabilized pricing in the condominium market seen over the past two years has created for a market in which buyers and sellers both have a good idea of what to expect. As such, there was no change between Q2 this year and last.

Sales Q2 2017 Q2 2016

without price change

with price change

-8%

Average Sales Price by Neighborhood - The Top 10

Double digit percentage gains were made in almost every one of the city’s condominium sectors. Among the most impressive was a 69 percent year-over-year gain in Russian Hill, where the average sales price came in at $2.52 million (second highest in the city).

Neighborhood

Q2 2017

Q2 2016

change

Presidio Heights

$2,574,000

$2,901,000

-11%

Russian Hill

$2,520,167

$1,487,624

69%

Telegraph Hill

$2,066,600

$1,706,000

21%

Pacific Heights

$2,034,624

$1,633,778

25%

Duboce Triangle

$1,987,000

$1,410,000

41%

Haight Ashbury

$1,768,043

$1,230,000

44%

Jordan Lake/Laurel Hgts

$1,766,667

$1,107,160

60%

< $700/sqft

Inner Sunset

$1,710,000

$1,100,000

55%

< $500/sqft

Marina

$1,633,967

$1,347,500

21%

Financial District

$1,529,900

$1,487,000

San Francisco Condominium Sales Price by Square Foot > $1000/sqft < $1000/sqft < $900/sqft

Page 15 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

San Mateo County Single-Family Homes After seeing a price dip in the first quarter of the year, the Mid-Peninsula bounced back to not only significantly outpace last quarter’s price, but to set a record for the county marking the tenth consecutive quarter in which the Mid-Peninsula has topped $1.5 million. The average sales price of $1.79 million was 15 percent above Q1’s $1.56 million and 3 percent higher than the year-over-year price of $1.74 million — the previous record high. Many sellers who were waiting on the sidelines in the winter joined a strong spring market as 1,301 homes sold in San Mateo County during the second quarter, up 83 percent from Q1 and 6 percent from Q2 2016. This high demand also set a rapid pace of movement where homes sold in an average of 20 DOM. If the third-quarter trends are anything to go by, sellers should expect the strong market to continue.

SAN MATEO COUNTY Average Sales Price

Days on Market

Average Price Per Sq. Ft.

Q2 2017

$1,797,069

$903

change

15%

-25%

Q1 2017

$1,569,038

$841

Q2 2017

$1,797,069

$903

change

-2%

Q2 2016

$1,745,957

$843

Page 16 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

6453+ 55+ 41+ 65+ 62+ 55+ 41+ 66+ 66+ 55+ 36+ 70+ 69+ 50+ 38+ 63+ 56+ 56+ 35+ 65+ Quantity Sold — Five Years/Quarter

1400 1200 1000 800 600 400 200 0

Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

$1,700 $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900

56+53 5258+ 6465+ 6272+ 7471+ 7077+ 8280+ 7876+ 8782+ 8378+ 89 Average Sales Price Five Years/Quarter (in thousands)

Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

Sales Price Change

Mirroring the trends of the previous quarter, several San Mateo County sellers priced boldly in Q2. Those that required no price change netted 9 percent on top of initial listing. However, there was a 13 percent loss on asking price for others who tested the market, making it the largest drop among all seven counties. Sales Q2 2017 Q2 2016

without price change

with price change

-13%

-12%

Average Sales Price by City The Top 10

Hillsborough saw its average sales price impacted by a $29.850-million sale in Q2, pushing the average sales price up to $5.02 million, up 22 percent from $4.1 million in Q2 2016. However, the Mid-Peninsula’s highest average sales price this quarter belonged to Atherton at $5.953 million, which also accounted for seven of the top 10 highest priced sales in Q2.

City

Q2 2017

Q2 2016

change

Atherton

$5,953,109

$7,991,309

-26%

Hillsborough

$5,024,769

$4,105,706

22%

Portola Valley

$3,515,411

$3,049,335

15%

Woodside

$3,100,441

$5,500,050

-44%

> $1000/sqft

Menlo Park

$2,492,882

$2,408,073

< $1000/sqft

Burlingame

$2,311,458

$2,180,784

San Carlos

$1,866,226

$1,808,149

Redwood Shores

$1,860,667

$1,802,857

Foster City

$1,723,029

$1,681,000

Belmont

$1,683,325

$1,501,929

12%

San Mateo County Single-Family Home Sales Price by Square Foot

< $900/sqft < $700/sqft < $500/sqft

Page 17 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

Marin County Single-Family Homes Marin County enjoyed a record-setting second quarter as the average sales price soared to the highest in market history. The $1.658 million average price was up 6 percent from Q1’s $1.568 million recorded average, and up 4 percent from the previous year. The amount of available inventory did increase in Q2, which led to an influx of buyers stepping off the sidelines and into the typically busier spring market, resulting in a total of 691 homes being sold. While this figure was much larger than that of Q1 2017, this quarter’s steady 3 percent climb was still somewhat in line with what’s expected of year-over-year trends. Q2 did mark the fifth highest sales volume tally for Marin County since Q1 2008. The county’s average of 38 DOM was similar to that of Q2 2016.

MARIN COUNTY Average Sales Price

Days on Market

Average Price Per Sq. Ft.

Q2 2017

$1,658,495

$719

change

-31%

Q1 2017

$1,568,518

$667

Q2 2017

$1,658,495

$719

change

Q2 2016

$1,597,870

$677

Page 18 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

6766+ 59+ 42+ 77+ 70+ 55+ 42+ 76+ 61+ 52+ 37+ 70+ 62+ 51+ 31+ 67+ 50+ 48+ 33+ 69+ Quantity Sold — Five Years/Quarter

700 600 500 400 300 200 100 0

53+5052+5361+6260+7069+6869+7175+ 76+7080+7172+7882 Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

Average Sales Price Five Years/Quarter (in thousands)

$1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900

Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

Sales Price Change

Similar to the previous quarter, homes in Marin County that required no price changed sold at 4 percent above the initial list price, while buyers who tested the market netted only 90 percent of their initial asking price. These were both standard numbers in relation to recent Marin County activity. Sales Q2 2017 Q2 2016

without price change

with price change

-10%

-9%

Average Sales Price by City The Top 10

Belvedere remained Marin’s top neighborhood in this quarter, with its $4.003 million average sales price boosted by a nearly $13 million home sale that closed this spring. Bolinas experienced the largest jump in average sales price for the quarter at $2.578 million, a 119 percent climb from the $1.176 million posted in Q2 2016.

City

Q2 2017

Q2 2016

change

Belvedere

$4,003,583

$4,028,938

-1%

Tiburon

$3,159,595

$2,885,144

10%

Ross

$3,115,742

$4,404,778

-29%

Kentfield

$2,637,950

$2,667,476

-1%

Bolinas

$2,578,000

$1,176,300

119%

< $1000/sqft

Stinson Beach

$2,198,750

$3,735,357

-41%

< $900/sqft

Sausalito

$2,162,052

$2,022,011

Larkspur

$2,018,720

$1,967,528

Mill Valley

$1,768,525

$1,806,013

-2%

Greenbrae

$1,716,417

$1,871,318

-8%

Marin County Single-Family Home Sales Price by Square Foot > $1000/sqft

< $700/sqft < $500/sqft

Page 19 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

Napa County Single-Family Homes Napa County continued to see its average sales price rebound in the second quarter. The $914,645 average sales price here was 3 percent higher than it was a year ago at $888,001 â&#x20AC;&#x201D; and likely giving sellers a reason to smile as this second quarter figure was the third highest quarterly average recorded in Napa County over the last 10 years. The price point also makes Napa a desirable alternative to the seven-figure San Francisco, Marin and San Mateo Counties. Quarterly sales volume, at 338 total homes sold, was in line with the market activity of the last four second quarters in Napa. While inventory moved faster than it did in Q1, Napaâ&#x20AC;&#x2122;s average of 75 DOM in Q2 was still 14 percent slower than that of the previous year.

NAPA COUNTY Average Sales Price

Days on Market

Average Price Per Sq. Ft.

Q2 2017

$914,645

$444

change

-23%

Q1 2017

$873,923

$425

Q2 2017

$914,645

$444

change

14%

Q2 2016

$888,001

$441

Page 20 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

4238+ 36+ 26+ 36+ 37+ 31+ 21+ 34+ 30+ 27+ 25+ 35+ 35+ 27+ 23+ 34+ 37+ 31+ 26+ 34+ Quantity Sold — Five Years/Quarter

500 400 300 200 100 0

Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

Average Sales Price Five Years/Quarter (in thousands)

$900 $800 $700 $600 $500 $400

53+50 65+ 52+ 66+ 67+ 68+ 72+ 79+ 83+ 73+ 75+ 78+ 83+ 93+ 96+ 88+ 88+ 80+ 87+ 91+ Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

Sales Price Change

Napa County sellers who priced right on the money or slightly above the market’s yield, and required no price change, recouped their original asking price. While those who chose to test the market were able to recover 91 percent of their initial asking price. Sales

without price change

with price change

Q2 2017

-9%

Q2 2016

-9%

Average Sales Price by City - The Top 10

It was Yountville moved into the top spot this quarter, knocking St. Helena down a notch from its previously held number one position. However, Yountville’s $2.647 million average sales price was supported by a $6.45 million home sale that occurred in the area and further explains such year-over-year gains of 173 percent.

City

Q2 2017

Q2 2016

change

Yountville

$2,647,250

$968,238

173%

St. Helena

$2,011,016

$2,255,321

-11%

Calistoga

$1,214,462

$870,235

40%

Angwin

$915,429

$1,957,000

-53%

Napa

$800,842

$788,334

< $1000/sqft

Deer Park

$620,000

n/a

< $900/sqft

American Canyon

$532,579

$461,865

15%

Pope Valley

$240,875

$157,500

53%

n/a

$2,950,000

n/a

Napa County Single-Family Home Sales Price by Square Foot > $1000/sqft

< $700/sqft < $500/sqft

Oakville

Page 21 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

Sonoma County Single-Family Homes Sonoma County proved to be the most affordable in the Bay Area and the most stable when it comes to pricing in quarter-over-quarter and year-over year comparisons. The county’s average sales price was the only one that dipped from Q1 to Q2 of this year — falling slightly from $741,361 to $740,338, respectively. Yet when looking at it on a year-over-year basis, which lends itself to a more accurate representation due to the lack of seasonal influences and fluctuations, Sonoma County’s average sales price was up 5 percent from Q2 2016. The total number of homes sold soared this quarter, with 1,204 closings in Q2 being up 48 percent from the start of the year. Sonoma County’s increased inventory also led to increased demand, speeding up the average DOM to 51 this quarter to result in a 13 percent increase from the previous year when the average was 58 DOM.

SONOMA COUNTY Average Sales Price

Days on Market

Average Price Per Sq. Ft.

Q2 2017

$740,338

$414

change

-30%

Q1 2017

$741,361

$412

Q2 2017

$740,338

$414

change

-13%

-37%

Q2 2016

$703,420

$660

Page 22 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

58+ 74+ 71+ 63+ 48+ 70+ 69+ 55+ 44+ 62+ 68+ 56+ 38+ 68+ 63+ 42+ 61+ 61+ 51+ 42+ 60+ Quantity Sold — Five Years/Quarter

1400 1200 1000 800 600 400 200 0

44+45 4746+ 5455+ 59+ 59+ 6059+ 66+ 6366+ 70+ 7274+ Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

Average Sales Price Five Years/Quarter (in thousands)

$650 $600 $550 $500 $450 $400 $350

Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

Sales Price Change

Sonoma County kept up with the trends of other Bay Area counties, where sellers priced high but also within reason of market demand and the prices it yields. As such, homes that required no price change in Q2 sold at 102 percent of sellers’ asking price. without price change

with price change

Q2 2017

Sales

-9%

Q2 2016

-9%

Average Sales Price by City The Top 10

Calistoga posted the highest average sales price for the county at $2.825 million last quarter, with five of its 13 home sales coming in at over $1 million. However, Occidental and Geyserville had the biggest year-overyear price gains with both cities experiencing 162 percent increases from Q2 2016.

City

Q2 2017

Q2 2016

change

Calistoga

$2,825,000

n/a

Kenwood

$2,539,480

$1,263,750

101%

Occidental

$1,366,875

$522,000

162%

Geyserville

$1,233,500

$470,000

162%

Healdsburg

$1,109,571

$1,549,181

-28%

< $1000/sqft

Penngrove

$1,028,857

$808,538

27%

< $900/sqft

Sebastopol

$990,053

$904,283

< $700/sqft

Sonoma

$966,106

$946,196

Glen Ellen

$951,400

$1,230,822

-23%

Jenner

$877,000

$755,000

16%

Sonoma County Single-Family Home Sales Price by Square Foot > $1000/sqft

< $500/sqft

Page 23 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

Alameda County Single-Family Homes The East Bay continues to be an attractive alternative to the higher-priced and lower inventory seven-figure counties, although prices are starting to creep up. In fact, Alameda County set a record in Q2 with an average sales price of $980,792 — a 7 percent gain from last year’s average of $912,792. This also marked the ninth consecutive quarter in which the Alameda County has surpassed $800,000. The county bounced back from a slower first quarter to post 2,790 total home sales in Q2 2017, a figure that was similarly in line with the 2,759 homes that sold during the second quarter of last year. In addition to solid price gains and market demand, sellers here also enjoyed the fastest turnaround times of all Bay Area counties with Alameda County’s average 17 DOM moving 2 percent faster than it did in Q2 2016.

ALAMEDA COUNTY Average Sales Price

Days on Market

Average Price Per Sq. Ft.

Q2 2017

$980,295

$544

change

11%

-35%

Q1 2017

$882,664

$508

Q2 2017

$980,295

$544

change

-2%

Q2 2016

$912,792

$509

Page 24 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

3000 2500 2000 1500 1000 500 0

7465+ 46+ 65+ 72+ 63+ 45+ 65+ 72+ 60+ 41+ 73+ 71+ 62+ 42+ 69+ 70+ 61+ 42+ 70+ Quantity Sold — Five Years/Quarter

Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

$950 $900 $850 $800 $750 $700 $650 $600 $550 $500

51+54 +5668+ 66+ 79+7574+7686+8280+8191+8687+8898 Average Sales Price Five Years/Quarter (in thousands)

Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

Sales Price Change

Many sellers took a risk in Alameda County during the second quarter, with those requiring no change on initial asking price netting an additional 9 percent profit, while other sellers who tested the market were still able to recover 93 percent of their asking price. Sales Q2 2017 Q2 2016

without price change

with price change

-7%

Average Sales Price by City - The Top 10

Nearly every community of Alameda County saw year-overover year gains. Q2’s largest year-over-year gain occurred in Albany where the average sales price of $1.137 million was 22 percent higher than this same time last year. Berkeley’s $1.343 million average sales price in Q2, up 4 percent year-over-year.

City

Q2 2017

Q2 2016

change

Piedmont

$2,130,057

$2,255,863

-6%

Berkeley

$1,343,827

$1,292,347

Pleasanton

$1,318,978

$1,302,918

Fremont

$1,171,719

$1,079,158

Albany

$1,137,083

$931,605

22%

Alameda

$1,130,980

$1,015,898

11%

Dublin

$1,032,943

$1,026,602

Livermore

$908,651

$824,101

10%

< $700/sqft

Union City

$882,928

$839,420

< $500/sqft

Hayward

$867,529

$804,857

Alameda County Single-Family Home Sales Price by Square Foot > $1000/sqft < $1000/sqft < $900/sqft

Page 25 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

Contra Costa County Single-Family Homes Contra Costa County mirrored that of neighboring Alameda County this quarter with its similar trends of stable price gains, sales volume growth, and quick turnaround times. Contra Costa County continues to be one of the more attractive markets, in terms of accessibility and affordability, for Bay Area homebuyers even while posting notable second quarter figures. The first being the countyâ&#x20AC;&#x2122;s average sales price climbing 9 percent from the previous year to reach $837,130 in Q2 2017. A total of 3,063 homes sold in Contra Costa County this quarter, which was up 3 percent yearover-year and 52 percent quarter-over-quarter. This all occurred as homes also sold in an average of 19 DOM, 12 percent faster than Q2 2016, and the second quickest turnaround time in the Bay Area.

CONTRA COSTA COUNTY Average Sales Price

Days on Market

Average Price Per Sq. Ft.

Q2 2017

$837,130

$395

change

16%

-34%

12%

Q1 2017

$718,957

$351

Q2 2017

$837,130

$395

change

-12%

Q2 2016

$767,617

$361

Page 26 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

3430+ 2520+ 2729+ 2318+ 2728+ 2318+ 30+ 2521+ 32+ 2720+ 30 Quantity Sold — Five Years/Quarter

4000 3000 2000 1000 0

$800 $700 $600 $500 $400 $300

46+37 47+ 4962+ 6361+ 5969+ 63+ 7471+ 6668+ 7672+ 7072+ 83 Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

Average Sales Price Five Years/Quarter (in thousands)

Q2‘12 Q3’12 Q4‘12 Q1‘13 Q2‘13 Q3‘13 Q4‘13 Q1‘14 Q2‘14 Q3‘14 Q4‘14 Q1‘15 Q2‘15 Q3‘15 Q4‘15 Q1‘16 Q2‘16 Q3‘16 Q4‘16 Q1‘17 Q2‘17

Sales Price Change

Homes in Contra Costa County were priced in accordance with buyer expectations, as sellers who required no price change netted just 4 percent on top of initial list price. Those who tested the market recovered 94 percent of their initial asking price. Sales

without price change

with price change

Q2 2017

-6%

Q2 2016

-7%

Average Sales Price by City - The Top 10

Strong price gains were felt in almost every community throughout Contra Costa County. Leading the way in Q2 was Diablo, posting an average sales price of $2.508 million, making it the highest year-over-year gain of 42 percent. Kensington and El Cerrito also showed notable average sales price increases, each with a 13 percent improvement over the previous year, at $1.178 million and $949,000 respectively.

City

Q2 2017

Q2 2016

change

Diablo

$2,508,514

$1,768,750

42%

Alamo

$1,809,741

$1,893,713

-4%

Orinda

$1,723,552

$1,584,174

Lafayette

$1,684,206

$1,551,437

Danville

$1,433,078

$1,332,451

Moraga

$1,401,392

$1,316,202

Kensington

$1,178,205

$1,043,238

13%

< $700/sqft

San Ramon

$1,170,229

$1,103,931

< $500/sqft

Walnut Creek

$1,150,994

$1,123,175

Point Richmond

$1,044,333

$970,000

Contra Costa County Single-Family Home Sales Price by Square Foot > $1000/sqft < $1000/sqft < $900/sqft

Page 27 | McGuire Real Estate Quarterly Report - 2nd Quarter 2017

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