San Carolos real estate market

January 17, 2011 by
Filed under: California 

The San Carolos real estate market, a subsidiary of the larger Bay Area housing market, saw a substantial decline in median sales price and a larger number of properties in the market according to a number of real estate tracking services.  According to statistics provided by the S&P/Case-Shiller index, the San Francisco area had the worst performance among all West Coast cities examined during the month of October 2010. The group recorded a decline of almost two percent during October, the largest decline among the communities of Los Angeles, Seattle, Portland, San Diego, and San Francisco. Although the S&P/Case-Shiller index normally lags behind the calendar by a couple months, many experts have speculated that these figures may indicate an upcoming “double-dip” in the housing market. Basically, because property values are on the decline once again, it appears that the nationwide real estate market may fall into another slump. In the broader economic picture, consumer spending rallied strongly even as consumer confidence saw negative news in a new report from the Conference Board. Like the housing market, it is possible that confidence has been adversely affected by less than stellar numbers from the labor market.

The decline of median sales prices among San Carlos and San Francisco homes for sale was accompanied by an increase in the inventory of properties. According to the home listing tracking service ZipRealty, the month of December 2010 saw a considerable increase in the number of homes for sale. Their figures indicated that inventory had increased by more than fifty percent between December 2009 and December 2010. Among the twenty-six markets surveyed by ZipRealty, the only market to post an inventory increase as large as San Francisco was another California city, San Diego. The composite figure for the entire index also saw a year-over-year increase, although it was forty percent smaller than the rise reported for San Francisco. It is unclear how heavily the local housing market was affected by the expiration of the federal housing tax credit, although some experts have suggested that the initiative essentially cannibalized future home sales in exchange for a temporary boost in properties sold.

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