Unprecedented Opportunities for Buyers as Bay Area Market Struggles in the Third Quarter
RealEstateRama   -   Real Estate   -   Government   -   Nonprofit   -   Web

Unprecedented Opportunities for Buyers as Bay Area Market Struggles in the Third Quarter


PLEASANTON, Calif., Oct. 24 /PRNewswire/ — Home sales declined by 30 percent in the Bay Area, year-over-year, across all housing types, according to a third quarter report released today by the research division of Prudential California Realty based on an analysis of MLS data. Median prices continued to gain momentum, rising nine percent, year-over-year. Listing inventory saw its most significant change in several quarters, dropping by seven percent after stabilizing in the second quarter.

All counties reported decreases in sales, with Solano continuing to have the most significant decline (-46%) while San Francisco had the smallest drop (-16%), year-over-year. The story of median price, however, was predominantly positive. San Mateo and Marin recorded the highest overall increases in median price with a 12 percent jump across all housing types.

“The market continued to contract in the third quarter and it is unlikely that we have seen the bottom of it yet,” said Scott Kucirek, general manager of Prudential California Realty based in Pleasanton. “This data shows the fallout of the loan problems that came to a head in mid-August when sales activity stalled. We are seeing some positive signs in the first few weeks of the fourth quarter in several counties, but on the whole, the market is still struggling to find its equilibrium.”

                  Third Quarter Bay Area Market Summary 2007

    Housing              Median Price*                   Home Sales
     Type        Q3 2007   Q3 2006   % Change    Q3 2007   Q3 2006   % Change

       Homes    $828,819  $751,859     +10        8,963     12,847      -30

      Homes     $521,995  $489,331      +7        2,078      2,886      -28
    Housing          Average Days on Market            Active Listings**
     Type       Q3 2007   Q3 2006   difference    Q3 2007   Q3 2006   % Change
                                    (in days)
     Homes        61         49        +12        48,541     52,056      -7
     Homes        61         47        +14         9,875     10,639      -7

While overall sales have declined significantly, activity was uneven, with remarkable resilience in the sale of high-end properties in Marin (Corte Madera, Kentfield and Greenbrae) and San Mateo (Hillsborough, Menlo Park and Portola Valley) even as activity in nearby areas experienced significant drops. Unique, competitively priced homes in the sought-after areas continued to sell well as established buyers were able to purchase in the most advantageous market in years.

In contrast, in many counties only those who had a pressing need to sell, whether it was due to a job transfer, family reasons or foreclosure, were willing to make the price adjustments necessary to attract buyers. This was especially true in low to mid-range homes in city subdivisions of Santa Clara and Sonoma where there was a surplus of inventory. Sellers in these areas faced strong competition from bank-owned properties with aggressive price reductions.

Added Kucirek: “Emerging from this correction are unprecedented opportunities for buyers in the Bay Area. Investors are increasingly inquiring about deals as inventory levels stabilize.”

    Survey of Bay Area Counties' Median House Prices – Third Quarter 2007
                   Single-Family Detached Homes Single-Family Attached Homes
                     Third       Third            Third      Third
                    Quarter     Quarter % change Quarter    Quarter   % change
                    2007 ($)    2006 ($)         2007 ($)   2006 ($)

    Alameda County  $684,603   $653,615     +5   $419,607  $403,821      +4
    Contra Costa
     County         $715,431   $671,033     +7   $333,620  $360,596      -7
    Marin County   $1,173,675 $1,046,699   +12   $644,599  $576,783     +12
    Napa County     $600,000   $635,510     -6   $397,750  $462,500     -14
    San Francisco
     County        $1,018,068  $949,905     +7   $811,408  $743,241      +9
    San Mateo
     County        $1,147,720  $990,927    +16   $523,646  $500,924      +5
    Santa Clara
     County         $976,382   $861,149    +13   $459,907  $449,765      +2
    Solano County   $425,410   $471,541    -10   $314,016  $318,515      -2
    Sonoma County   $573,842   $581,648     -1   $354,714  $377,802      -6
    Bay Area
     median         $828,819   $751,859    +10   $521,995  $489,331      +7
         Survey of Bay Area Counties' Unit Sales – Third Quarter 2007

                Single-Family Detached Homes     Single-Family Attached Homes
                       Third       Third     %       Third     Third      %
                       Quarter    Quarter  change   Quarter   Quarter   change
                        2007       2006               2007      2006

    Alameda County     1,895      2,781     -32       350        478     -27
    Contra Costa
     County            1,563      2,453     -36       274        363     -25
    Marin County         446        532     -16       111        157     -30
    Napa County          129        188     -31        16         40     -60
    San Francisco
     County              574        713     -20       471        537     -12
    San Mateo
     County              951      1,284     -26       233        338     -31
    Santa Clara
     County            2,138      2,947     -28       442        698     -37
    Solano County        525        949     -45        62        132     -53
    Sonoma County        742      1,000     -26       119        143     -17
    Bay Area totals    8,963     12,847     -30     2,078      2,886     -28

    *  The median home price for the entire region is the weighted mean of
       median home prices of cities within the San Francisco Bay Area.

    ** Active listings is the sum of listings that were available for sale for
       at least one day within the quarter. This can include listings from
       previous quarters.
    Days on market (DOM) is the number of days a property was listed on the
     market until it went under contract at its final listing price. This is
     may not reflect previous listings.

    Data are sourced from multiple listing services and are deemed reliable
     but not guaranteed.

    All percentages rounded to nearest whole number.

    Bay Area refers to sales within Alameda County, Contra Costa County, Marin
     County, Napa County, San Francisco County, San Mateo County, Santa Clara
     County, Solano County and Sonoma County.

About Prudential California:

Founded in 1887 as Mason-McDuffie Real Estate and transitioning to the Prudential name in 1997, Prudential California Realty and its sister affiliations in Nevada and Texas are a leading innovator of real estate technology solutions to its agents and clients. Now the 8th largest national real estate brokerage, Prudential California Realty provides comprehensive real estate solutions when buying, selling and owning a home with more than 21,000 transactions and $11 billion in annual sales for 2006. The company offers consumers full MLS access to home listings through its website http://www.PruRealty.com. Part of the tri-state affiliation owned by David Cobo and Ed Krafchow that includes Prudential California Realty, Prudential Nevada Realty, Prudential Texas Properties and Prudential Texas Realty, the organization cumulatively has more than 4,600 agents and 132 offices. Prudential California is an independently owned and operated member of the Prudential Real Estate Affiliates.
    FOR MORE INFORMATION, please contact:
    Mansfield Communications Inc.
    Eliza Walsh: 415.283.3232, eliza (at) mcipr (dot) com or Mark Cohen: 415.283.3216,
    mark (at) mcipr (dot) com
SOURCE Prudential California Realty

© 2007 PR Newswire. All Rights Reserved.


California RealEstateRama is an Internet based Real Estate News and Press Release distributor chanel of RealEstateRama for California Real Estate publishing community.

RealEstateRama staff editor manage to selection and verify the real estate news for State of California.


Previous articleCountrywide Announces a $16 Billion Comprehensive Home Preservation Program
Next articleLocal workers want California labeled ‘high-cost’ state