Signs of Hope in the Bay Area as Prices of Residential Units Inch Up
In last December prices as well as sales picked up for the third running month with the media jumping to $380,000 from what it was a year previously – $50,000. 7,828 deals on new and old single family houses and condos were closed showing 13.6% increase from what it was a year previously. The media increase in sale price for the Bay Area comprising of nine counties showed a gain of 15.2% from December 2008.
December 2009 was the third running month to show price gains. Many are taking this to be a sign that the worst is over because generally the last month of the year records the worst dips.
Another reason for this increase is the competition among the buyers have picked up causing a fall in the number of foreclosed houses sitting on the shop shelves waiting to be sold. This in turn has led to increase in prices of these homes. More of houses in the middle and high price range have been sold. This too pulls up prices in general. In the more affluent parts of Bay Area like the counties of San Mateo, Santa Clara and San Francisco the gains sales have been impressive.
However experts are cautious about opining whether this trend is going to stay or not because unemployment continues to be high. There are fears that another wave of foreclosures is poised to hit the shores. The most important thing currently is generation of jobs.
For the time being foreclosure numbers in the real estate market are low – it being 32.3% of the total number of houses waiting to be sold in the Bay Area last month. In December 2008 the proportion had been 48.3%. Last February it had created a record by touching 52%.
Despite these good signs some of the pundits feel that delaying of the loan modification programs have kept on hold foreclosures. Ultimately these will enter the market. The measures being taken are only delaying the pain and not permanently rectifying the damage. Prices will tumble as soon as these units rush into the market.
