Double Digit Price Increases in SF Bay Area

According to the latest statistics released by National Association of Realtors, it looks that the housing bottom is slowly vanishing. The report for the first quarter of 2010 says home prices in metro areas show an increase from what they were a year ago and most of the US States show healthy gains in volume of home sales as well.

The San Francisco Bay area housing market shows a double-digit price increase along with smaller metros in the Northeast and price gains in the Midwest housing markets.

During the first quarter of this year, NAR reports that 91 out of 152 metropolitan statistical areas reviewed, recorded higher median home prices for existing single family homes, compared to the first quarter of 2009, which includes 29 metros with double digit increase; 3 metros no change; and 58 metros showed price declines.

In the last quarter of 2009, 67 metro areas recorded gains in median prices while 123 were down, whereas just 30 Metropolitan Statistical Areas showed annual price increase in the third quarter ending September 2009.

Regarding home sales volumes, NAR report says that increased home sales is recorded in 44 States of US including District of Columbia; double-digit increase in 31 States, no change in 2 States and down in 2 States.

The median home sale price in respect of single-family homes was almost steady with no significant change nationally – it stood at $166,100 during the first quarter of this year – from $167,300 recorded in the first quarter of 2009. Foreclosure homes in distress sale, where a typical discount of 15 percent was available compared to traditional homes in the market, accounted for 36 percent on an average during the first quarter.

Vicki Cox Golder, President of NAR commented that there has been a change in the market psychology; buyer confidence is back; home buyers have long-term views; the typical buyer plans to stay in their home for 10 years; the flipping mentality has taken a back-seat; most people see housing for what it is –  meaning shelter that provides social benefits; and is also a good long-term investment.

Posted by Amitesh Kumar on May 24 2010. Filed under Housing, Lending. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry