The nine-county region saw the highest November sales rate in six years, said San Diego-based DataQuick. A total of 7,296 new and resale homes changed hands in November, up 15.5 percent from a year earlier. That was nearing the long-term November average of 7,873 sales.

“We’re seeing a more-normal level of sales and a more-normal distribution of sales across price categories,” said Andrew LePage, a DataQuick analyst. “The market isn’t quite as lopsided.”

Bay Area buyers paid a median price of $438,000 last month, up 20.5 percent from November 2011. DataQuick said about half of the increase stemmed from a shift in the mix of houses sold.

Bargain-basement foreclosure resales are now at their lowest level in five years, accounting for 11.5 percent of November resale transactions. A year ago they were a quarter of the market; at their peak in 2009, foreclosures were 52 percent of all resales.

Short sales – homes sold for less than is owed on the mortgage – were 23 percent of the resale market, down from 24.9 percent a year ago.

More buyers committed to pricier homes. Mortgages above the old “jumbo” limit of $417,000 were 40.1 percent of the November market, up from 29 percent a year earlier.

Realtors throughout the Bay Area report that a dearth of supply is fueling bidding wars, with properties selling well above asking prices.

“We’re getting 30 offers on properties at the lowest price points,” said Don Faught, managing broker with Alain Pinel Realtors in the Tri-Valley area.

“The challenge we have now is that there’s nothing to sell,” he said. “But now that prices are increasing, people are finally realizing that they can sell their house.”

LePage agreed. “This is a strengthening market that is still undersupplied, hence the pressure on prices,” he said. “If these trends hold, we will see a lot more inventory. As prices ratchet up, fewer people are underwater and those who are in a position to sell will be tempted to make their move now.”

Investors remained a potent market force. Buyers paying all cash bought 28.7 percent of Bay Area properties in November, the same as a year earlier, paying a median $320,000, up 27 percent from November 2011.

Low interest rates – one trend underlying the surge in sales – seem likely to continue. The rates on 30-year mortgages dipped last week to an average of 3.32, nearing the record low, according to a Freddie Mac survey, also released Thursday. The all-time low was 3.31 percent in the Nov. 21 report.

The Federal Reserve said Wednesday it would continue buying government securities and mortgage bonds until unemployment drops below 6.5 percent – something it predicts will not happen until 2015. The tens of billions of dollars it is pouring into those purchases will keep interest rates low.

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

Article source: http://www.sfgate.com/realestate/article/Bay-Area-home-sales-prices-jump-4116852.php

The nine-county region saw the highest November sales rate in six years, said San Diego-based DataQuick. A total of 7,296 new and resale homes changed hands in November, up 15.5 percent from a year earlier. That was nearing the long-term November average of 7,873 sales.

“We’re seeing a more-normal level of sales and a more-normal distribution of sales across price categories,” said Andrew LePage, a DataQuick analyst. “The market isn’t quite as lopsided.”

Bay Area buyers paid a median price of $438,000 last month, up 20.5 percent from November 2011. DataQuick said about half of the increase stemmed from a shift in the mix of houses sold.

Bargain-basement foreclosure resales are now at their lowest level in five years, accounting for 11.5 percent of November resale transactions. A year ago they were a quarter of the market; at their peak in 2009, foreclosures were 52 percent of all resales.

Short sales – homes sold for less than is owed on the mortgage – were 23 percent of the resale market, down from 24.9 percent a year ago.

More buyers committed to pricier homes. Mortgages above the old “jumbo” limit of $417,000 were 40.1 percent of the November market, up from 29 percent a year earlier.

Realtors throughout the Bay Area report that a dearth of supply is fueling bidding wars, with properties selling well above asking prices.

“We’re getting 30 offers on properties at the lowest price points,” said Don Faught, managing broker with Alain Pinel Realtors in the Tri-Valley area.

“The challenge we have now is that there’s nothing to sell,” he said. “But now that prices are increasing, people are finally realizing that they can sell their house.”

LePage agreed. “This is a strengthening market that is still undersupplied, hence the pressure on prices,” he said. “If these trends hold, we will see a lot more inventory. As prices ratchet up, fewer people are underwater and those who are in a position to sell will be tempted to make their move now.”

Investors remained a potent market force. Buyers paying all cash bought 28.7 percent of Bay Area properties in November, the same as a year earlier, paying a median $320,000, up 27 percent from November 2011.

Low interest rates – one trend underlying the surge in sales – seem likely to continue. The rates on 30-year mortgages dipped last week to an average of 3.32, nearing the record low, according to a Freddie Mac survey, also released Thursday. The all-time low was 3.31 percent in the Nov. 21 report.

The Federal Reserve said Wednesday it would continue buying government securities and mortgage bonds until unemployment drops below 6.5 percent – something it predicts will not happen until 2015. The tens of billions of dollars it is pouring into those purchases will keep interest rates low.

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

Article source: http://www.sfgate.com/realestate/article/Bay-Area-home-sales-prices-jump-4116852.php

There were also signs the market continues its long trek back to normalcy: The portion of homes bought with adjustable-rate and “jumbo” loans rose, while the share of sales involving foreclosures, investors and cash buyers fell, a real estate information service reported.

A total of 6,789 new and resale houses and condos sold in the nine-county Bay Area last month. That was down 3.7% from 7,051 in March and down 3.1% from 7,003 in April 2010, according to San Diego-based DataQuick.

On average, Bay Area home sales have risen 4.4% between March and April since 1988, when DataQuick’s statistics begin.

Last month’s sales were the lowest for an April since 2008, when 6,310 sold, and were the third-lowest on record. April sales have ranged from a low of 5,636 in 1995 to a high of 14,430 in 2004, while the average is 9,147. Last month’s sales tally was 25.8% below that average.

“April activity looks weak on the heels of March, which eked out the highest sales for that month in four years. But it’s also to be expected that sales and other statistics will behave more erratically these days. Part of the reason is that short sales are at relatively high levels, and they can take much longer to close escrow. Lenders can vary the pace at which they sell off distressed homes. What’s clear now is that 2011 is off to a slow start, but it’s a little soon to write off the rest of the year,” said John Walsh, DataQuick president.

“Higher job growth or lower home prices, coupled with low mortgage rates and rising consumer confidence, could still push sales well above today’s subpar level. Of course, everything will be tempered this year by the people who won’t buy until they’re convinced prices have hit rock bottom, and by those who can’t buy because they owe more on their existing homes than they’re worth.”

Article source: http://www.thestreet.com/story/11120821/1/san-francisco-home-sales-at-3-year-low.html