Property Lines

All Homes          #Sold    #Sold    Pct.    $Median   Median     Pct.
                                   5/09   5/10   Chng    May-09    May-10     Chng
                                                                    
Alameda             1,477   1,596   8.1%    $330,000    $390,000   18.2%
Contra Costa      1,694   1,704   0.6%   $234,500    $293,750   25.3%
Marin                     220   264   20.0%     $620,000    $675,500      9.0%
Napa                       121   127   5.0%         $370,000    $350,000   -5.4%
Santa Clara         1,688   2,164   28.2%  $445,000   $525,000   18.0%
San Francisco        498   616   23.7%     $634,000    $636,500     0.4%
San Mateo              516   640   24.0%     $550,000    $605,000     10.0%
Solano                     706   652   -7.6%      $189,500    $219,000      15.6%
Sonoma                  527   501   -4.9%       $302,000    $335,000     10.9%
Bay Area           7,447   8,264   11.0%   $341,500   $410,000   20.1%

 Source: MDA DataQuick, DQNews.com

I love DataQuick and their reports. Today they’re saying that it’s a sunnier real estate climate for the nine-county Bay Area, but that just means it’s much sunnier than a year ago when the housing market had plummeting values. Foreclosure sales still account for more than a quarter of all homes in May — 27.3 percent, although it’s still down from the peak, which was February 2009 when foreclosed homes accounted for just over half (52 percent) of sales. From DataQuick:

     The continued decline in sales of low-cost inland foreclosures helps explain how the Bay Area’s median sale price could rise more than 20 percent in a year. Last month the median paid for all new and resale houses and condos combined jumped to $410,000, up 10.8 percent from $370,000 in April and up 20.1 percent from $341,500 in May 2009.
     The median has risen on a year-over-year basis for eight straight months, though in May it was still 38.3 percent below the $665,000 peak in June/July 2007.
     The May median’s 20.1 percent annual gain reflects several factors, including the decline in foreclosure resales, price stability and modest price pressure in some areas, and the shift toward more high-end sales. Activity has picked up in the higher-cost areas in part because distress has increased over the last year and sellers have become more motivated and realistic.

Oooo, tell it like it is, DataQuick! Already I see “For Sale” signs in my neighborhood — because summer is the quintessentially perfect time to buy a house — and some are asking for the same prices they asked for three years ago!  Are people that blinded by ignorance or greed? The houses that are priced correctly are selling and always have. The house I’m living in now was originally priced at $995,000 because the owner was about $900,000 in debt. Once it was foreclosed on — the price went less than half of that and sold in three weeks.

The story goes on to say that higher-end sales would be larger if adjustable-rate mortgages (remember those?) were more available to buyers, but with the credit crisis or 2007 when banks tightening up lending, it’s unlikely to change very much. However, DataQuick reports some slight upswing in ARMs, approximately 13.1 percent accounted for home purchases in May, up from 3.5 percent a year ago. Still, more than a third of all homes sold in May were over $417,000, the old conforming limit — and those loans more than $417,000 are call jumbo loans which generally come at a higher interest rate.

So who are these people and how are they getting these loans? I’m imagining they must have a lot of money or savings behind them because lenders are not eager to go above the $417,000 line in the sand. However, on the flip side, low down payment FHA loans are being taken out by Bay Area buyers in droves, accounting for 24.6 percent of all lending in May. Investor,s or vulture capitalists, are still active in the Bay Area but are showing signs of slowing down as the prices rise.

     Last month absentee buyers – mostly investors – purchased 14.6 percent of all Bay Area homes sold, paying a median $270,000. That’s down from 18.2 percent in April and 17.6 percent a year ago, when the median paid was $220,000. Buyers who appeared to have paid all cash – meaning there was no corresponding purchase loan found in the public record – accounted for 21.2 percent of sales in May, paying a median $275,000, which is up from a median $210,000 a year ago. The cash rate was 23.5 percent of sales in April this year and 26.2 percent in May 2009.

It’s definitely another mixed message for the Bay Area housing market. However, if you’re a prospective buyer and you see something that you want –  still try to get it for under the asking price.

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