Want to have a look at June market report from SF Bay Area?
Sending mixed signals – this will be the apt description of statistics available on various fronts from the 9-county- SF Bay area housing market. On the one hand foreclosure activity, which was steadily increasing last year, has showed a decline for the past few months. On the other home sales have shown a decline, successively following the expiration of the tax-break incentive on 30th April.
Absentee-buyers, meaning those making real estate investment for flipping to profit or deriving rental income have increased, which means regained confidence in SF Bay Area housing market after the bubble. High-end property sale is not up to the mark, possibly because of borrowers experiencing difficulty in getting jumbo loans.
Now for the actual statistics: Total homes finalized sales deal in SF Bay Area was recorded as 8,373 properties in June. In comparison, during May it was 8,264 and the increase works out to 1.3%. But it did not reach the figure of June 2009 namely 8,644 and therefore down by 3.1%.
Interestingly, the home sales figures have shown a continuous trend upwards during May and June every year since 1988, on an average of 3.9 percent, but this June has not fallen in line with it. The monthly home sales figure also shows a drop by 17.9 % for a June record of 10,198 homes ever since 1988.
On the price front also there was no significant rise shown from May and the median remained at $410,000 in respect of all sales including condos, resale houses and new ones. But if you compare this with the home median price prevailing in June 2009, it is an upward trend by 16.5% from $352,000. However all these figures cannot compete with the peak price of housing properties in SF Bay Area, prevailing at $665,000 during the years 2007 and 2008.
Last month, home buyers and investors were not that keen in buying properties from foreclosures it seems. The share of foreclosure re-sale homes in the month of June fell to 26.7%, whereas it was 26.8% in May 2010 and 36.7% in June 2009.
Because all these statistics point towards different directions the market is heading, we can’t be sure as of now and study the market reports for another 3 or 4 months to get confirmed.
Posted by Amitesh Kumar
on Aug 6 2010. Filed under Housing.
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