Year-over-year home sales dip but June sales pick up – Bay Area stat
Now that authentic statistics have come out for the month of June, it looks as though the 9 county SF Bay Area housing market is ahead of rough path still to go. Home sales in the Bay Area last month is reported to have declined by 3.1% compared to June 2009. However, on a comparison of month to month – the sales of resale homes is up by 1.3% in June than May 2010.
By taking the year-over-year sales figure, one can assume that the end of the tax-break incentive program on 30th April (only extended for closing till 30th September) has its impact in dousing up the spirit of home buyers and investors. But this presumption is belied, by the fact home shoppers are active in their hunt and thus there is a rise in home sales compared to May.
Inventory of homes available for sale rose during the month of June in the SF Bay Area unusually, since the month of June every year will see fewer listings of homes for sale. Figuratively there are 22,403 residential properties waiting for buyers at the end of June, an increase of 8.7% from that of May.
Market watchers are of the view that there will be higher influx of homes into the market by the end of 2010. The reason being – Bank repo properties are steadily on the increase month after month of late and more ARM mortgages resetting will increase the delinquency rates nationally, as well as in Bay Area. It is reported that more than 7 million home owners are behind their mortgages, and will fall into the foreclosure trap during the second half of 2010.
However there is encouraging news though for home sellers. The median price of a Bay Area home, recorded in June at $410,000 is up by 16.5 percent – than what it was in June 2009.
Other statistics worth noting are – Jumbo loans – that is amount of loan over $417, 00 involved in home sales for June is 33 percent; adjustable rate mortgages accounted for 11.9 percent of total home sales in June, where 16 percent of buyers are supposed to be investors, buying properties for business purposes and not for their own living, in SF Bay Area.
Posted by Amitesh Kumar
on Jul 19 2010. Filed under Foreclosures, Housing.
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