A total of 9,339 new and resale houses and condos changed hands in the nine-county Bay Area in July – up 13.3 percent from July 2012, said DataQuick, a San Diego real estate research firm. The median paid was $562,000, a 33.5 percent increase from the same time last year.

Pent-up buyer demand, an improving regional economy and low interest rates have propelled home prices upward for many months. But a dearth of homes for sale meant the number being sold fell on a year-over-year basis every month since January. That trajectory reversed course in July.

“It was a really strong month,” said Andrew LePage, a DataQuick analyst.

Rising inventory shows the real estate market regaining equilibrium.

“Sellers want to jump on the train by putting their properties on the market, which levels supply and demand,” said Tanja Beck, an agent with Zephyr Real Estate in San Francisco.

Fewer bids

More inventory, as well as rising interest rates, should soon rein in the sharp price increases. Although bidding wars still occur, many agents say multiple offers now are measured in smaller numbers – perhaps three bids instead of a dozen.

While San Francisco is the nation’s most competitive market, with 80.5 percent of successful home buyers facing other bids, multiple offers in the city dropped nearly 10 percent from June to July, according to a report from real estate firm Redfin.

Nationwide, fewer bidding wars “points toward the strong sellers’ market beginning to shift toward more balance, giving frustrated home buyers a bit of relief,” Redfin said.

Distress sales are down sharply, another sign of a return to normal. Foreclosure resales were under 5 percent of the total – their lowest level since August 2007, before the credit crunch hit. In February 2009, foreclosure resales were 52 percent of the market, DataQuick said. Their historic monthly average in the Bay Area is about 10 percent of sales.

Short sales – properties sold for less than is owed on the mortgage – were 10 percent of July resales, down from 23.7 percent a year earlier.

Fewer distress sales also mean that people who sell their homes are likely to turn around and buy another property, creating a positive upward spiral.

“There was a time when more than half the sales were the lender pocketing money (in a foreclosure resale) so they just ended there,” LePage said. “Now a greater and greater percentage are traditional sellers, who will move up and buy from someone who themselves will move up.”

Upward mobility

Jessica and Josh Rowe exemplify that move-up buyer. The couple, along with their toddler and two French bulldogs, wants to move from San Francisco to the South Bay to live closer to their jobs. They listed their condo in Haight-Ashbury, a three-bedroom remodeled Victorian, at $949,000. It’s likely to go for well above asking price.

“To go from being sellers to being buyers, your confidence gets crazy-hacked,” said Jessica Rowe. “As a seller, you’re on top of the world, you make all this money – but as a buyer you can’t afford to get (something comparable) to what you just sold.”

The Haight condo itself illustrates the market turnaround. When the Rowes bought it three years ago – near the market’s bottom – the previous owners were on the brink of foreclosure. After unsuccessfully listing it at $799,000 for a month, they slashed the price to $755,000, which is what the Rowes paid.

The Bay Area’s median price is now 15.5 percent off the $665,000 peak it reached in summer 2007, LePage said. During the downturn, its nadir was $290,000 in March 2009.

The median represents the middle value of homes sold, meaning half sold for more and half for less. DataQuick said about three-quarters of the median’s increase stems from rising home values, the remainder from a shift in market mix.

More high-end homes and fewer inexpensive ones sold in July. Just over half (51 percent) of sales had mortgages above the old jumbo limit of $417,000, compared with 38.6 percent a year earlier and the low point of 17.1 percent in January 2009.

Federal Housing Administration loans, mostly used by first-time buyers, were 10.6 percent of purchase mortgages in July, down from 16 percent a year earlier. First-time home buyers consistently report getting squeezed out by investors and others paying all cash.

All-cash sales continued to be a strong force, accounting for 24 percent of July purchases, DataQuick said. In February, they peaked at 32.3 percent of sales.

Absentee buyers, who are mainly investors, snapped up 20.9 percent of Bay Area homes in July. Their market share also peaked in February, at 28.7 percent.

Carolyn Said is a San Francisco Chronicle staff writer. E-mail: csaid@sfchronicle.com Twitter: @csaid

Article source: http://www.sfgate.com/business/article/Bay-Area-home-prices-sales-climb-in-July-4736589.php

San Diego-based DataQuick said Thursday that the March results were due to demand continuing to outstrip supply in many areas.

DataQuick says 7,263 new and resale houses and condos sold in the nine-county area last month, up 34.4 percent from February but down 6 percent from March 2012.

The median price paid in March was $436,000, an increase of 7.7 percent from $405,000 in February and up 21.8 percent from $358,000 in March 2012.

DataQuick says transactions of $500,000 or greater helped push the median sale price up.

The Associated Press

Article source: http://www.utsandiego.com/news/2013/apr/18/supply-affects-sf-bay-area-march-home-sales/

La Jolla, CA – April 18, 2013 – (RealEstateRama) — Bay Area home sales fell below a year earlier for the second consecutive month in March as demand continued to outstrip supply in many markets. While low-end sales fell sharply compared with March 2012, $500,000-plus transactions jumped, helping to push the median sale price up on a year-over-year basis for the 12th consecutive month, a real estate information service reported.

A total of 7,263 new and resale houses and condos sold in the nine-county Bay Area last month. That was up 34.4 percent from 5,404 the month before, and down 6.0 percent from 7,723 in March 2012, according to San Diego-based DataQuick.

It’s normal for sales to jump between February and March, with that gain averaging 39.5 percent since 1988, when DataQuick’s statistics begin. March sales have ranged from a low of 4,898 in 2008 to a high of 12,645 in 2004. Last month’s sales were 17.1 percent lower than the March average of 8,758.

The median price paid for a home in the nine-county Bay Area last month was $436,000. That was up 7.7 percent from $405,000 in February and up 21.8 percent from $358,000 in March last year.

The median has risen on a year-over-year basis for 12 consecutive months, with double-digit year-over-year gains the last ten months, and increases above 20 percent for the past five months.

Still, last month’s median was 34.4 percent lower than the $665,000 peak in June and July of 2007. In March 2009 the median hit its post-peak low of $290,000. That trough was an almost absurdly low level for the Bay Area, reflecting both widespread price declines as well as robust sales of heavily discounted inland foreclosures at a time high-end sales were all but dormant.

It appears that well over half of the 21.8 percent year-over-year increase in March’s median sale price reflects rising home prices. It’s Economics 101: Prices go up as growing demand meets an exceptionally low supply of homes for sale. However, a portion of the March median’s year-over-year gain reflects a change in market mix – sales of low-cost distress homes have fallen sharply, while sales of pricier move-up homes have shot up.

“Higher sales in the middle and top of the housing market reflect improved consumer confidence, ultra-low mortgage rates and the unleashing of more pent-up demand than many anticipated. There’s been a shift in psychology, where more people worry prices will rise and fewer fear a decline. It’s drawn a lot of folks off the fence following a long stretch of sub-par sales, especially in the higher price ranges. In the more affordable markets, we’ve seen a big drop in foreclosures, which limits the supply of homes for sale. Then you have homeowners who still can’t sell because they owe more than their homes are worth,” said John Walsh, DataQuick president.

“The more prices rise, though, the more likely we’ll see a lot more people put their homes on the market,” Walsh added. “There’s pent-up demand among potential sellers, too, and many will try to move as soon as it makes sense. A substantial jump in inventory would at least moderate home price growth.”

Last month the number of homes that sold for less than $500,000 fell 18.9 percent compared with March 2012, while the number that sold for $500,000 or more rose 25.2 percent, DataQuick reported.

Distressed property sales – the combination of foreclosure resales and “short sales” – made up about 30 percent of the resale market in March. Last month’s figure, which was the lowest in five years, was down from about 35 percent in February and down from about 49.0 percent a year ago.

Foreclosure resales – homes that had been foreclosed on in the prior 12 months – accounted for 10.7 percent of Bay Area resales last month, down from 14.0 percent in February, and down from 25.5 percent a year ago. Last month’s level was the lowest since foreclosure resales were 10.1 percent of the resale market in November 2007. Foreclosure resales peaked at 52.0 percent in February 2009. The monthly average over the past 18 years is 10.2 percent.

Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 19.0 percent of Bay Area resales last month. That was down from an estimated 20.5 percent in February and down from 23.8 percent a year earlier.

Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 39.7 percent of last month’s purchase lending, up from 37.1 percent in February, and up from 30.7 percent a year ago. Jumbo usage dropped as low as 17.1 percent in January 2009. Before the credit crunch struck in August 2007, jumbos accounted for nearly 60 percent of the Bay Area purchase loan market.

Adjustable-rate mortgages (ARMs), another indicator of mortgage availability, accounted for 12.7 percent of the Bay Area’s home purchase loans last month. That was up from 11.0 percent in February, and up from 11.6 percent a year ago. Since 2000, ARMs have accounted for a monthly average of about 42 percent of all purchase loans. ARMs hit a low of 3.0 percent of purchase loans in January 2009.

Government-insured FHA home purchase loans, a popular, low-down-payment choice among first-time buyers, accounted for 12.3 percent of home purchase mortgages in March. That was down from 14.6 percent in February and down from 20.9 percent a year earlier. In recent months the FHA level has been the lowest since summer 2008, reflecting both tougher qualifying standards and the difficulties first-time buyers have competing with investors and other cash buyers.

The most active lenders to Bay Area home buyers last month were Wells Fargo with 14.8 percent of the purchase loan market, Stearns Lending with 4.5 percent, and RPM Mortgage with 3.6 percent.

Last month absentee buyers – mostly investors – purchased 27.3 percent of all Bay Area homes. That was down from 28.7 percent in February, and up from 24.2 percent a year ago. Absentee buyers paid a median $324,000 in March, up 29.6 percent from $250,000 a year earlier.

Buyers who appear to have paid all cash – meaning no sign of a corresponding purchase loan was found in the public record – accounted for 31.1 percent of sales in March. That was down from 32.3 percent the month before and up from 29.4 percent a year earlier. The monthly average going back to 1988 is 12.9 percent. Cash buyers paid a median $325,000 in March, up 30.0 percent from $250,000 a year earlier.

San Diego-based DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. Because of late data availability, sales were estimated for Alameda and San Francisco counties.

The typical monthly mortgage payment that Bay Area buyers committed themselves to paying last month was $1,579. That was up from $1,460 in February, and up from $1,359 a year ago. Adjusted for inflation, last month’s payment was 44.1 percent below the typical payment in spring 1989, the peak of the prior real estate cycle. It was 58.7 percent below the current cycle’s peak in July 2007.

Indicators of market distress continue to decline. Foreclosure activity is well below year-ago and peak levels reached in the last few years. Financing with multiple mortgages is low, and down payment sizes are stable, DataQuick reported.

All Homes #Sold #Sold Pct. $Median Median Pct.

Source: DataQuick, www.DQNews.com

Media calls: Andrew LePage (916) 456-7157

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Article source: http://www.realestaterama.com/2013/04/18/bay-area-home-sales-dip-below-2012-level-again-median-sale-price-rises-ID020407.html

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The real estate tracking firm DataQuick says San Francisco Bay area home sales dipped in March compared to the same period in 2012, but the median price rose on a year-over-year basis for the 12th consecutive month.

San Diego-based DataQuick said Thursday that the March results were due to demand continuing to outstrip supply in many areas.

DataQuick says 7,263 new and resale houses and condos sold in the nine-county area last month, up 34.4 percent from February but down 6 percent from March 2012.

The median price paid in March was $436,000, an increase of 7.7 percent from $405,000 in February and up 21.8 percent from $358,000 in March 2012.

DataQuick says transactions of $500,000 or greater helped push the median sale price up.

Copyright Associated Press

Article source: http://www.nbcbayarea.com/news/local/Supply-Affects-SF-Bay-Area-March-Home-Sales-203631541.html

     A total of 8,579 new and resale homes were sold in the nine-county Bay Area last month. That was up 1.4 percent from 8,461 in July, and up 14.2 percent from 7,513 for August 2011.

     A July-to-August sales increase is normal for the Bay Area summer season. August sales have varied from 6,688 in 1992 to 13,940 in 2004, while the average for all months of August since 1988, when DataQuick’s statistics start, is 9,638.

     The median price paid for all new and resale houses and condos sold in the Bay Area last month was $410,000. That was down 2.6 percent from $421,000 in July, and up 10.8 percent from $370,000 in August 2011.

     The Bay Area median almost always drops from July to August. Roughly half the year-over-year increase in the median can be attributed to a shift in market mix.

     The median’s low point of the current real estate cycle was $290,000 in March 2009. The peak was $665,000 in June/July 2007. Around half of the median’s peak-to-trough drop was the result of a decline in home values, while the other half was the result of a shift in the sales mix.

     “Most economists agree that the housing market is off bottom. But there’s a big gap between the market being ‘off bottom’ and being normal, which it’s not. The single biggest bottleneck is still the dysfunctional mortgage lending market. It’ll be interesting to see how yesterday’s announcement that the Fed is going to buy mortgage-backed securities plays out,” said John Walsh, DataQuick president.

     Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 38.7 percent of last month’s purchase lending, up from a revised 38.6 percent in July, and up from 32.9 percent a year ago. Last month was the highest since 43.4 percent in November 2007. In the current cycle, jumbo usage dropped to as low as 17.1 percent in January 2009. Before the credit crunch struck in August 2007, jumbos accounted for nearly 60 percent of the Bay Area purchase loan market.

     Adjustable-rate mortgages (ARMs), an important indicator of mortgage availability, declined again last month, accounting for 12.8 percent of the Bay Area’s home purchase loans. That was down from a revised 13.5 percent in July, and down from 16.0 percent in August last year. Since 2000, ARMs have accounted for 49.4 percent of all purchase loans. ARMs hit a low of 3.0 percent of loans in January 2009.

     Government-insured FHA home purchase loans, a popular choice among first-time buyers, accounted for 16.1 percent of all Bay Area home purchase mortgages last month. That was the same as in July and down from 21.1 percent a year earlier.

     The most active lenders to Bay Area home buyers last month were Wells Fargo with 17.0 percent of the market, RPM Mortgage with 4.6 percent and Bank of America with 3.3 percent. A year ago, Bank of America’s market share was 8.2 percent.

     Last month 40.2 percent of Bay Area sales were for $500,000 or more, down from a revised 42.0 percent in July, and up from 35.9 percent in August 2011. The low for the current cycle was January 2009, when just 22.7 percent of sales crossed the $500,000 threshold. Over the past 10 years, a monthly average of 48.0 percent of homes sold for $500,000-plus.

     Last month distressed property sales – the combination of foreclosure resales and “short sales” – made up about 33.8 percent of the Bay Area’s resale market. That was down from 34.0 percent in July and down from 43.8 percent a year ago.

     Foreclosure resales – homes that had been foreclosed on in the prior 12 months – accounted for 14.9 percent of resales in August, down from a revised 15.1 percent in July, and down from 25.7 percent a year ago. Last month was the lowest since 14.0 percent in December 2007. Foreclosure resales peaked at 52.0 percent in February 2009. The Bay Area’s monthly average for foreclosure resales over the past 17 years is about 10 percent.

     Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 18.9 percent of Bay Area resales last month. That was the same as in July and up from 18.1 percent a year earlier.

     Absentee buyers – mostly investors – purchased 23.0 percent of all Bay Area homes sold last month, up from a revised 22.6 percent in July, and up from 21.2 percent a year ago. Absentee buyers paid a median $264,500 in August, up 5.8 percent from a year ago.

     Buyers who appear to have paid all cash – meaning there was no evidence of a corresponding purchase loan in the public record – accounted for 28.0 percent of August sales. That was up from a revised 27.6 percent in July, and up from 27.5 percent a year ago. The monthly average going back to 1988 is 12.6 percent. Cash buyers paid a median $273,250 in August, up 9.3 percent from a year earlier.

     San Diego-based DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. Because of late data availability, sales were estimated in Alameda, San Francisco and San Mateo counties.

     The typical monthly mortgage payment that Bay Area buyers committed themselves to paying last month was $1,491, down from $1,522 in July, and up from $1,460 a year ago. Adjusted for inflation, last month’s payment was 46.6 percent below the typical payment in spring 1989, the peak of the prior real estate cycle. It was 60.6 percent below the current cycle’s peak in July 2007.

     Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards but below peak levels reached over the last three years. Financing with multiple mortgages is low and down payment sizes are stable, DataQuick reported.

(chart)

All Homes           #Sold    #Sold     Pct.     $Median      Median      Pct.

                   Aug-11   Aug-12     Chng      Aug-11      Aug-12      Chng

Alameda             1,498    1,828    22.0%    $349,000    $380,000      8.9%

Contra Costa        1,576    1,649     4.6%    $260,500    $300,000     15.2%

Marin                 264      341    29.2%    $619,500    $634,000      2.3%

Napa                  121      160    32.2%    $320,000    $350,000      9.4%

Santa Clara         1,731    1,892     9.3%    $492,000    $542,750     10.3%

San Francisco         484      625    29.1%    $618,500    $700,000     13.2%

San Mateo             678      716     5.6%    $570,000    $592,500      3.9%

Solano                595      693    16.5%    $185,000    $190,000      2.7%

Sonoma                566      675    19.3%    $305,000    $345,000     13.1%

Bay Area            7,513    8,579    14.2%    $370,000    $410,000     10.8%

Source: DataQuick, DQNews.com

Article source: http://www.kionrightnow.com/story/19578820/bay-area-august-home-sales-highest-since-2006

A total of 5,702 new and resale houses and condominiums
sold in the nine-county region, the eighth straight year-over-
year increase and a 4.1 percent gain from January, the San
Diego-based data seller said today in a statement. Foreclosures
and short sales, where the price is less than the amount owed,
made up half of all purchases. Cash buyers accounted for a
record 32 percent of deals.

Prices fell to a median $325,500, down 0.3 percent from
January and 3.6 percent from February 2011. It was the 17th
consecutive decline on an annual basis. Absentee buyers, mostly
investors, accounted for 26 percent of sales last month, a
record, said DataQuick, which began compiling real estate
information in 1988.

“Many potential buyers are still waiting for the lending
spigot to open more,” John Walsh, DataQuick’s president, said
in the statement. “Drum-tight credit conditions continue to
undermine housing, along with negative equity and the various
uncertainties plaguing would-be buyers.”

Alameda County led the region with a 33 percent sales gain
from a year earlier, and Marin County had the largest price
increase, climbing 7.6 percent to a median $535,500. San
Francisco rose 5.9 percent to $624,000.

To contact the reporter on this story:
Dan Levy in San Francisco at
dlevy13@bloomberg.net

To contact the editor responsible for this story:
Daniel Taub at
dtaub@bloomberg.net

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Article source: http://www.bloomberg.com/news/2012-03-15/san-francisco-area-home-sales-climb-on-investor-purchases.html

The regions median sale price dipped to its lowest level since January as activity above $500,000 fell sharply, distressed property sales rose slightly, and mortgage availability worsened, a real estate information service reported.

A total of 16,829 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in October. That was down 7.3%

from 18,149 in September and up 0.5% from 16,744 in October 2010, according to San Diego-based DataQuick.

A separate report released on Tuesday showed California home sales posted a marginal increase in October and also were above year-ago levels.

According to figures released Tuesday from the California Association of Realtors, closed escrow sales of existing, single-family detached homes in California edged up to a seasonally adjusted 493,240 units in October, up 0.9% from a revised 488,700 in September.

The October statewide median price of an existing, single-family home sold in California was $278,060, down 3.3% from $287,440 in September and down 8.9% from the $305,150 median price recorded for October 2010, according to C.A.R.

Both reports cite the drop median price on Congress failing to act on conforming loan limits as a possible reason.

Most homebuyers use what are called “conforming” loans, or those backed by the Federal Home Administration, to purchase their homes. Congress sets the limits for these loans. The previous limits reset to lower limits on October 1. In high cost areas, the cap for these federally backed loans dropped to $625,500 from $729,750.

In short, what this means is that buyers who need a loan that exceeds the new limit are forced to obtain a “jumbo” mortgage loan, which is often considerably more expensive.

Based on preliminary analysis, it appears that the lower conforming loan limits has had a cooling effect on home sales in October, particularly in the higher cost markets across the state, such as the San Francisco Bay Area and coastal regions of Southern California, said C.A.R. President LeFrancis Arnold. This evidence supports the need for reinstating the higher loan limits while the housing market is in transition to recovery.

Long Beach area Realtor Richard Daskam, with Keller Williams Realty in Los Alamitos, said the expiration of the loan limits has already been cutting into his business.

With the expiration of the loan limits, Im not at all surprised by the numbers, Daskam said. Two of my buyers in the $750,000-range backed away and signed one-year leases on their current rentals because they felt that the decrease in the loan limits will cause home prices to fall further over the next year. Both buyers were going to use FHA loans, so it really affected their ability to purchase.

The regional median has declined year-over-year for the past eight months, according to the DataQuick report. The last time any one of the six Southland counties posted an annual gain in its median sale price was in January, when San Bernardino logged a 1% year-over-year increase.

Theres still some optimism in the market, as many buyers realize the historically low interest rates wont be around forever.

In the greater Long Beach region I’m seeing buyers with a cautious sense of optimism – the low interest rates are very attractive and (buyers have) been waiting for some time, said Helen Najar, with ReMax Real Estate Specialists in Long Beach. The buyers I’m in escrow with now feel this is as good as it’s going to get and they have moved forward to buy.

Najar and fellow real estate agents shes spoken with feel there seems to be serious concern about government’s continuing intrusion into the housing market, she said. The unexpected consequences of regulations continues to cause major roadblocks to getting business done.

Paying a median $204,000, cash buyers purchased 29.4% of all Southland homes sold in October, up from 29.2% in September, and 27.8% a year ago. Cash purchases hit a high of 32.3% of sales this February, while the 10-year monthly average is 14.5%. Cash purchases are where there was no indication in the public record that a corresponding purchase loan was recorded.

The typical monthly mortgage payment that Southland buyers committed themselves to paying was $1,040 last month, down from $1,084 in September and $1,111 in October 2010. Adjusted for inflation, current payments are 55.4% below typical payments in the spring of 1989, the peak of the prior real estate cycle. They are 63.4 below the current cycles peak in July 2007.

Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards but is lower than peak levels reached over the last few years. Financing with multiple mortgages is very low, and down payment sizes are stable, DataQuick reported.

Article source: http://www.lbpost.com/news/don/12785

After posting a strong month-to-month sales gain in June, the Bay Area housing market took a breather in July as potential buyers and sellers watched the strange political show in Washington D.C. and pondered a rising tide of dreary economic reports.

Sales fell more than usual from June – especially for homes above $500,000 – but edged higher than July last year, which was 2010′s first month to lose the full force of homebuyer tax credits, a real estate information service reported.

A total of 6,887 new and resale houses and condos sold in the nine-county Bay Area last month. That was down 13.9% from 7,998 in June and up 1.7% from 6,773 in July 2010, according to San Diego-based DataQuick.

A decline from June to July is normal for the season, with that dip averaging 6.8% since 1988, when DataQuick’s statistics begin. July sales have varied from a low of 6,666 in July 1995 to 14,258 in 2004. Last month’s sales were the third-lowest on record for a July, behind July last year and in 1995, and fell 26.8% below the average July sale tally.

“Last year’s tax credits were by and large gone by July, so last month’s year-over-year comparison is pretty much apples and apples. We’re still looking at a dysfunctional market. Distribution curves are lopsided, bottom-feeding is still prevalent and the lending market is just plain weird. We’re off bottom by all metrics, but far from anything resembling normal,” said John Walsh, DataQuick president.

Last month’s sales fell harder in the higher price ranges: The number of $500,000-plus homes sold dropped 25.4% month-to-month and 19.2% year-over-year, while sales below $500,000 fell 17.1% month-to-month and increased 3.5% from a year ago.

“There’s certainly a lot more discretionary buying in the higher price ranges,” Walsh said. “A lot of those buyers have the option to just take it or leave it and, lately, it looks like more have been leaving it. There was a lot of uncertainty out there over the economy, home prices and the nation’s future. And that was before the stock market turbulence hit in early August.”

The median price paid for all new and resale houses and condos sold in the Bay Area last month was $374,000, down 1.0% from $377,750 in June and down 7.0% from $402,000 in July 2010. The June median was the highest this year, while the July median was the second-highest.

The median’s low point during the current real estate cycle was $290,000 in March 2009. The peak was $665,000 in June/July 2007. Around half of the median’s peak-to-trough drop was the result of a decline in home values, while the other half reflects a shift in the sales mix.

Foreclosure resales – homes that had been foreclosed on in the prior 12 months – accounted for 26.6% of resales in July. Last month’s figure was up slightly from a revised 26.1% in June and up from 25.3% a year ago. Foreclosure resales peaked at 52.0% in February 2009. The monthly average for foreclosure resales over the past 15 years is about 9%.

Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 18.8% of Bay Area resales last month. That was up from an estimated 17.9% in June, 17.2% a year earlier, and 14.4% two years ago.

Last month 35.3% of Bay Area sales were for $500,000 or more, down from 37.7% in June and down from 41.1% in July 2010. The all-time low for the current cycle was in January 2009, when just 22.7% of sales crossed the $500,000 threshold. Over the past 10 years, a monthly average of 47.3% of homes sold for $500,000-plus.

Fueling many lower-end transactions are low-down-payment, government-insured FHA home purchase loans, a popular choice among first-time buyers. They accounted for 22.4% of all Bay Area home purchase mortgages in July, up from 20.6% in June and down from 23.1% a year earlier.

One indicator of mortgage availability that has seen improvement this year dropped in July. Last month 14.2% of the Bay Area’s home purchase loans were adjustable-rate mortgages, a drop from June’s 16.8, which was the highest portion since 20.7% in August 2008. The average monthly ARM rate over the past 10 years is 45.3%. ARMs hit a low of 3.0% in January 2009.

Jumbo loans, mortgages above the old conforming limit of $417,000, remain relatively hard to get but accounted for 32.7% of last month’s purchase lending, down from 36.8% in June and 36.4% a year ago. Jumbo use hit a low for this cycle of 17.1% in January 2009. Before the credit crunch struck in August 2007, jumbos accounted for nearly 60% of the Bay Area purchase loan market.

Last month absentee buyers – mostly investors – purchased 21.2% of all Bay Area homes sold, up from 20.0% in June and 17.4% a year ago. The peak was 23.4% in February this year, while the monthly average since 2000 is 13.8%. Absentee buyers paid a median $236,000 in July, up from $235,000 in June but down from $269,250 a year ago.

Buyers who appeared to have paid all cash – meaning no corresponding purchase loan was found in the public record – accounted for 26.3% of sales in July, up from 26.0% in June and up from 25.1% a year ago. The record was 30.5% this February, while the monthly average is 11.9% since 1988. Cash buyers paid a median $230,000 in July, down from $248,000 in June and $270,000 a year earlier.

San Diego-based DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. Because of late data availability, sales were estimated in Alameda and San Mateo counties.

The typical monthly mortgage payment that Bay Area buyers committed themselves to paying last month was $1,525, up from $1,533 in June and down from $1,641 a year ago. Adjusted for inflation, last month’s payment was 44.7% below the typical payment in spring 1989, the peak of the prior real estate cycle. It was 59.1% below the current cycle’s peak in July 2007.

Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards but below peak levels reached over the last three years. Financing with multiple mortgages is low, down payment sizes are stable, and non-owner occupied buying is above average, DataQuick reported.

This article was republished with permission from The Street.

Article source: http://www.nuwireinvestor.com/articles/bay-area-sales-see-summer-slip-57651.aspx

Real estate sales in San Francisco reached a one-year high in June, driven by a combination of factors that pushed turnover to 14.5% over May sales. Analysts note a larger demand in lower-priced properties (below $300,000) in the nine-county area, lower interest rates, lower prices and a glut of distressed properties in the market as reasons for the sharp gain. Foreclosures and short sales draw down the value of new homes, making all more appealing to local buyer as well as absentee investors. The area also boasts many buyers in industries that have not been hit as hard during the economic crisis, like high-tech, which observers may feel contributed an additional boost. For more on this continue reading the following article from The Street.

Home sales in the San Francisco Bay area rose sharply last month from May to the highest level for any month since June 2010, when outgoing homebuyer tax credits gave housing demand a final boost. The median price rose slightly from May but remained below the year-ago level for the ninth consecutive month amid a sluggish move-up market and a higher share of sub-$300,000 transactions, a real estate information service reported.

A total of 7,998 new and resale houses and condos sold in the nine-county Bay Area last month. That was up 14.5% from 6,988 in May but down 4.5% from 8,373 in June 2010, according to San Diego-based DataQuick. .

On average, Bay Area sales have risen 4.9% between May and June since 1988, when DataQuick’s statistics begin.

Last month’s sales were the lowest for the month of June since 2008, when 7,178 homes sold. June sales have ranged from a low of 7,118 in 1993 to a high of 15,735 in 2004, while the average is 10,129. Sales last month fell 21.0% below the June average. June is normally a strong month and, among all months, it’s had the highest number of sales most often – seven of the past 23 years.

In June last year – the peak month for 2010 – sales were bolstered by state and federal efforts to stimulate the housing market via homebuyer tax credits. Those credits had expired or been largely depleted by July 2010, when sales plunged 19% from the month before and 23% from the previous July.

While the 14.5% jump in sales last month from May was nearly triple the normal increase, higher May-to-June gains were recorded as recently as 2008 and 2009, which logged 15.5% and 16.1% gains, respectively.

“It’s difficult to point to one specific thing that caused last month’s sales to jump more than usual from May. It wasn’t just in the Bay Area – we saw it across much of the state. June likely benefitted from a combination of factors, such as price reductions, low mortgage rates and perhaps a batch of short sale transactions from spring that took months to close. Bargain hunters, mainly investors and first-time buyers, remain very active,” said John Walsh, DataQuick president.

“While overall consumer confidence remains low, folks in certain industries such as high-tech are feeling more confident,” he continued. “Let’s keep in mind, however, that last month was not a particularly strong June, historically speaking, and one month’s increase in sales from the prior month doesn’t constitute a trend.”

The median price paid for all new and resale houses and condos sold in the Bay Area last month was $377,750, up 1.5% from May but down 7.9% from $410,000 in June 2010. Last month’s median was the highest since it was $380,000 last November.

Last month’s median was 30.3% higher than the low point for the current real estate cycle – $290,000 in March 2009. However, the June median was 43.2% below the peak $665,000 median reached in June/July 2007. Around half of the median’s peak-to-trough drop was the result of a decline in home values, while the other half reflects a shift in the sales mix toward lower-cost homes, especially inland foreclosures.

Today’s median is suppressed somewhat by abnormally low sales of newly built homes, which typically sell for more than resale homes, and abnormally high levels of foreclosure resales, which are among the most aggressively priced.

Last month 399 newly built houses and condos sold in the Bay Area, down 43.8% from a year earlier and the second-lowest for a June in DataQuick’s records, behind 360 new-home sales in 1993.

Foreclosure resales – homes that had been foreclosed on in the prior 12 months – accounted for 26.2% of resales in June. Last month’s figure was down slightly from 26.5% in May and up from 25.6% a year ago. Foreclosure resales peaked at 52.0% in February 2009. The monthly average for foreclosure resales over the past 15 years is about 9%.

Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 18.3% of Bay Area resales last month. That compares with an estimated 18.2% in May, 18.9% a year earlier, and 14.0% two years ago.

Last month 37.0% of Bay Area sales were for $500,000 or more, up from 36.3% in May but down from 40.7% in June 2010. The all-time low for the current cycle was January 2009, when just 22.7% of sales crossed the $500,000 threshold. Over the past 10 years, a monthly average of 47.2% of homes sold for $500,000-plus.

However, an alternative method of tracking activity in higher-end areas suggests that those neighborhoods now account for a fairly normal level of sales relative to overall regional activity.

Sales in zip codes representing the top one-third of the market, based on historical prices, accounted for 38.4% of all sales in June. That was up from 37.7% in May and 37.0% a year ago. The 10-year monthly average is about 36%. Those higher-end areas’ contribution to regional sales had dropped to as low as just 18.0% in January 2009, while their peak market share was 44.7% of sales in July 2007.

When viewed by several major price segments, it’s clear that the middle of the Bay Area market, roughly defined as $400,000 to $800,000, has taken the biggest hit over the past year. Sales in that price range accounted for 30.0% of all transactions last month, down from 30.9% in May and 37.6% a year ago, when homebuyer tax credits helped spur more move-up activity in that price range. Last month sales below $300,000 made up 38.9% of all transactions, up from 37.9 in May and 30.9% a year ago. Sales above $800,000 represented 17.0% of last month’s sales, up from 16.5% in May and 15.8% a year earlier.

Fueling many lower-end transactions are low-down-payment, government-insured FHA home purchase loans, a popular choice among first-time buyers. They accounted for 20.8% of all Bay Area home purchase mortgages in June, down from 21.3% in May and 24.7% a year earlier.

While sales of higher-cost homes continue to suffer from the credit crunch that struck in August 2007, one indicator of mortgage availability continued to improve slightly. In June, 17.3% of the Bay Area’s home purchase loans were adjustable-rate mortgages, the highest portion since 20.7% in August 2008. June’s figure was up from 16.1% in May and 12.2% a year earlier. ARMs are nothing unusual in the Bay Area, where the average monthly ARM rate over the last 10 years is 46%. ARMs hit a low of 3.0% in January 2009.

Jumbo loans, mortgages above the old conforming limit of $417,000, remain relatively hard to get but accounted for 35.2% of last month’s purchase lending, up from 32.6% in May and 34.5% a year ago. The post-housing-boom low was 17.1% in January 2009. Before the credit crunch struck in August 2007, jumbos accounted for nearly 60% of the Bay Area purchase loan market.

Last month absentee buyers – mostly investors – purchased 21.7% of all Bay Area homes sold, up from 21.3% in May and 16.3% a year ago. The peak was 23.4% in February this year, while the monthly average since 2000 is 13.7%. Absentee buyers paid a median $226,500 in June, down from $245,000 in May and $280,000 a year ago.

Buyers who appeared to have paid all cash – meaning no corresponding purchase loan was found in the public record – accounted for 25.4% of sales in June, down from 27.4% in May and up from 21.6% a year ago. The record was 30.5% this February, while the monthly average is 11.8% since 1988. Cash buyers paid a median $235,000 in June, down from $250,000 in May and $281,750 a year earlier.

San Diego-based DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. Because of late data availability, sales were estimated in Alameda and San Mateo counties.

The typical monthly mortgage payment that Bay Area buyers committed themselves to paying last month was $1,533, the same as in May and down 10.3% from $1,709 a year ago. Adjusted for inflation, last month’s payment was 44.5% below the typical payment in spring 1989, the peak of the prior real estate cycle. It was 59.0% below the current cycle’s peak in July 2007.

Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards but below peak levels reached over the last three years. Financing with multiple mortgages is low, down payment sizes are stable, and non-owner occupied buying is above average, DataQuick reported.

This article was republished with permission from The Street.

Article source: http://www.nuwireinvestor.com/articles/bay-area-home-sales-jump-in-june-57527.aspx

A total of 7,998 new and resale houses and condos sold in the nine-county Bay Area last month. That was up 14.5% from 6,988 in May but down 4.5% from 8,373 in June 2010, according to San Diego-based DataQuick. .

On average, Bay Area sales have risen 4.9% between May and June since 1988, when DataQuick’s statistics begin.

If you are looking to buy a home, TheStreet’s sister site BankingMyWay can help you find the lowest mortgage rates in your area.

Last month’s sales were the lowest for the month of June since 2008, when 7,178 homes sold. June sales have ranged from a low of 7,118 in 1993 to a high of 15,735 in 2004, while the average is 10,129. Sales last month fell 21.0% below the June average. June is normally a strong month and, among all months, it’s had the highest number of sales most often – seven of the past 23 years.

In June last year – the peak month for 2010 – sales were bolstered by state and federal efforts to stimulate the housing market via homebuyer tax credits. Those credits had expired or been largely depleted by July 2010, when sales plunged 19% from the month before and 23% from the previous July.

While the 14.5% jump in sales last month from May was nearly triple the normal increase, higher May-to-June gains were recorded as recently as 2008 and 2009, which logged 15.5% and 16.1% gains, respectively.

“It’s difficult to point to one specific thing that caused last month’s sales to jump more than usual from May. It wasn’t just in the Bay Area – we saw it across much of the state. June likely benefitted from a combination of factors, such as price reductions, low mortgage rates and perhaps a batch of short sale transactions from spring that took months to close. Bargain hunters, mainly investors and first-time buyers, remain very active,” said John Walsh, DataQuick president.

Article source: http://www.thestreet.com/story/11185614/1/san-francisco-homes-sales-jump-to-1-year-high.html