homesmillbrae.com » Slump http://homesmillbrae.com Thu, 20 Oct 2022 03:48:43 +0000 en hourly 1 http://wordpress.org/?v=3.1 San Francisco Bay area February home sales dip http://homesmillbrae.com/2081/san-francisco-bay-area-february-home-sales-dip-2/ http://homesmillbrae.com/2081/san-francisco-bay-area-february-home-sales-dip-2/#comments Mon, 18 Mar 2013 04:18:51 +0000 http://homesmillbrae.com/2081/san-francisco-bay-area-february-home-sales-dip-2/ Continue reading →]]> SAN DIEGO —
SAN DIEGO (AP) – Home sales dropped and prices rose in the San Francisco Bay area last month as supplies remained tight, the real estate research firm DataQuick reported Thursday.

A total of 5,404 houses and condominiums were sold, down 1.8 percent from January and more than 6 percent from February of 2012, DataQuick said.

The median sales price for a home in the nine-county area was $405,000. That was down 2.4 percent from January but still nearly 25 percent higher than a year ago.

Although prices remain well below the peak of several years ago, they have soared by double digits each month for the past nine months when compared with the same months a year earlier. The gains have topped 20 percent in the past four months in year-over-year comparisons, DataQuick said.

“Isn’t this Economics 101? Supply and demand?” DataQuick President John Walsh asked in a statement. “If demand outstrips supply in a free market, the price goes up.”

“Now, with a recovering economy, prices still closer to the bottom than to the top, with ultra-low mortgage interest rates and tight supply, the stage is set for price gains. This spring is going to be interesting,” Walsh said.

There were continuing indications that California’s housing market is recovering from its five-year slump.

“Foreclosure activity is well below peak levels reached in the last few years. Financing with multiple mortgages is low, and down payment sizes are stable,” DataQuick said in a statement.

Sales in February shifted from low-cost, distressed homes to mid-market and higher properties, with the number of homes selling for $500,000 or more jumping by 27.7 percent, DataQuick reported.

Foreclosures and short sales, those in which the price was less than the amount owed on the property, both were down over January and there were a lot fewer of them compared with February a year ago.

Investors, as compared with first-time homebuyers, accounted for a sizeable chunk of the sales. Absentee buyers, who mostly are investors, bought 28.2 percent of all Bay area homes.

That was an all-time high based on DataQuick figures going back to 2000, the company said.

In Southern California, homes sales continued strong, with 15,945 sold – the most for a February in the past six years.

The median sales price in Los Angeles and five other counties was $320,000, DataQuick reported Wednesday.

Article source: http://www.vcstar.com/news/2013/mar/14/sf-bay-area-february-home-sales-dip/

]]> http://homesmillbrae.com/2081/san-francisco-bay-area-february-home-sales-dip-2/feed/ 0 San Francisco Bay area February home sales dip http://homesmillbrae.com/2076/san-francisco-bay-area-february-home-sales-dip/ http://homesmillbrae.com/2076/san-francisco-bay-area-february-home-sales-dip/#comments Fri, 15 Mar 2013 04:04:00 +0000 http://homesmillbrae.com/2076/san-francisco-bay-area-february-home-sales-dip/ Continue reading →]]> SAN DIEGO — Home sales dropped and prices rose in the San Francisco Bay area last month as supplies remained tight, the real estate research firm DataQuick reported Thursday.

A total of 5,404 houses and condominiums were sold, down 1.8 percent from January and more than 6 percent from February of 2012, DataQuick said.

The median sales price for a home in the nine-county area was $405,000. That was down 2.4 percent from January but still nearly 25 percent higher than a year ago.

Although prices remain well below the peak of several years ago, they have soared by double digits each month for the past nine months when compared with the same months a year earlier. The gains have topped 20 percent in the past four months in year-over-year comparisons, DataQuick said.

“Isn’t this Economics 101? Supply and demand?” DataQuick President John Walsh asked in a statement. “If demand outstrips supply in a free market, the price goes up.”

“Now, with a recovering economy, prices still closer to the bottom than to the top, with ultra-low mortgage interest rates and tight supply, the stage is set for price gains. This spring is going to be interesting,” Walsh said.

There were continuing indications that California’s housing market is recovering from its five-year slump.

“Foreclosure activity is well below peak levels reached in the last few years. Financing with multiple mortgages is low, and down payment sizes are stable,” DataQuick said in a statement.

Sales in February shifted from low-cost, distressed homes to mid-market and higher properties, with the number of homes selling for $500,000 or more jumping by 27.7 percent, DataQuick reported.

Foreclosures and short sales, those in which the price was less than the amount owed on the property, both were down over January and there were a lot fewer of them compared with February a year ago.

Investors, as compared with first-time homebuyers, accounted for a sizeable chunk of the sales. Absentee buyers, who mostly are investors, bought 28.2 percent of all Bay area homes.

That was an all-time high based on DataQuick figures going back to 2000, the company said.

In Southern California, homes sales continued strong, with 15,945 sold – the most for a February in the past six years.

The median sales price in Los Angeles and five other counties was $320,000, DataQuick reported Wednesday.

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Article source: http://www.sacbee.com/2013/03/14/5262908/sf-bay-area-february-home-sales.html

]]> http://homesmillbrae.com/2076/san-francisco-bay-area-february-home-sales-dip/feed/ 0 Silicon Valley housing market, an ‘oasis in the desert’ http://homesmillbrae.com/571/silicon-valley-housing-market-an-oasis-in-the-desert/ http://homesmillbrae.com/571/silicon-valley-housing-market-an-oasis-in-the-desert/#comments Tue, 12 Apr 2011 07:29:21 +0000 http://homesmillbrae.com/571/silicon-valley-housing-market-an-oasis-in-the-desert/ Continue reading →]]>

The media can talk about the housing market being in a slump, but the San Francisco Bay Area, especially Silicon Valley, is an “oasis in the desert,” according to real estate consultant Carole Rodoni.

The former president of Fox Carskadon Realtors, former COO of Cornish and Carey Real Estate and Alain Pinel Realtors, and now president of Bamboo Consulting Inc., told members of the Silicon Valley Association of Realtors last week it’s been a slow recovery nationwide, but Silicon Valley is an exception.

Last year the economy experienced a 2.5 growth in GDP. Some analysts forecast a 3.5 percent growth this year, but Rodoni expects growth just in the 2.8 and 3 percent range. The stock market is doing well, especially big stocks like 3M, GE, Procter Gamble. Unemployment is down to 8.8 percent, but it’s not enough.

“We won’t see the numbers we like until 2013 or 2014 because we are stuck,” says Rodoni.

While big companies are making headway, small businesses continue to struggle. There’s just too much taxation and consumers are still cautious and holding back, she says.

Rodoni doesn’t mince words when she talks about Congress. She is furious at how lawmakers have handled the budget, the deficit, short sales and foreclosures, and even the war in Libya.

The picture is altogether different in Silicon Valley. “There are fireworks in Silicon Valley. Companies are hiring,” Rodoni says.

Rodoni

believes real estate will continue to be an asset here because the region is the gateway to the Pacific Rim, with the best universities, diversity of culture and education. “People aspire to live here, and there is no more land here. Land here will keep its value,” she says.

What should Realtors tell buyers? “Tell them they are getting a free gift right now,” Rodoni says. “The stars have aligned here. Where do you find this affordability?”

Prices have come down, even on the high end; interest rates have edged up to about 4 percent, but are still low. She predicts rates will rise by the end of the year to about 5 percent and, perhaps, 6 percent and 7 percent in three years due to inflation.

“Buyers should buy it, hold it–don’t spin it, and keep it for at least five years,” Rodoni says.

Rodoni says buyers should also pay attention to lending fees because she is certain fees will be 5 to 8 percent more expensive than last year. “At the end of the day interest counts, but understand that everything is going up because of loan fees. If you are a buyer, while it’s good to look at price, look also at loan fees. Match interest rate to the loan product,” she says.

Rodoni says buyers should ask themselves these questions: Is it the right price? Is it the right place? Examine where you are looking. Remember there are micro-markets. Will it appraise for that price?

Right now companies such as Facebook, Twitter and social network game developer Zynga aren’t in a rush to go public, but watch out when they do, Rodoni says. The region is a springboard for upcoming millionaires who are different from their baby boomer parents. This next generation is 80 percent about numbers and 20 percent emotion.

“They are asset and wealth builders. They will pay all cash for a home and leverage the stocks,” says Rodoni.

Buyers should evaluate their price range and not attempt to low ball when facing a multiple offer situation. Especially in this region, you cannot sit with terms and conditions.

“It would be like playing football on a baseball diamond. Get out if you can’t play,” says Rodoni. “Investors know there is value here and they will continue to come in. Silicon Valley is the bread and butter market. They see the sweet spot and will fight to get it.”

Article source: http://www.mercurynews.com/saratoga/ci_17822169

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