Oakland Real Estate Update

January 13, 2010 by · Leave a Comment
Filed under: California 
City and County of San Francisco
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Real estate experts are optimistic that the recent improvements in the Oakland real estate market provides signs that the Bay Area real estate market is recovering from the struggles it has faced since 2007, prior to the economic recession of 2008, which only worsened the real estate problems.  Over the past several months, the Bay Area has posted gains in both home sales and median prices, and the declines in home values in many markets are stabilizing.  Although foreclosure rates are still high, real estate experts believe that the rate will decline and the smaller inventory of foreclosed properties will result in an increase in the Bay Area median sales price.

According to DQNews.com, the Oakland real estate, as well as the entire Bay Area in California, has shown major improvements over the past few months, with sales and median price levels topping the previous year’s levels, despite a slight dip experienced in October.  In November, the median sales price for new and resale houses and condos in the Bay Area was $387,000, which was a 10.6 percent increase from $350,000 in November of 2008.  Before October, the median sales prices hadn’t risen on a year-over-year basis since November of 2007, but the current median sales price is still41.8 percent below the peak of $665,000 reached in the summer of 2007.  In November, the Bay Area posted a total of 6,878 new and resale home and condo sales, a 19.5 percent increase from the of the same month during the previous year.  Real estate experts believe that the large inventory of “bargain” priced homes has been a major incentive for prospective buyers.

The San Francisco Chronicle has also noted the promising signs of the Oakland real estate market with the slowing decline in property values in the Bay Area real estate markets.  According to the Chronicle, the Bay Area suffered from a $38.1 billion drop in property value in the first eleven months of 2009, however, that’s small in comparison to the $233.1 billion decline seen in 2008.  Real estate experts are optimistic that the general affordability of the Bay Area real estate and the federal tax credit will play a major role in improving the real estate market in the coming months.

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Palos Verdes real estate

December 18, 2009 by · Leave a Comment
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Point Vicente Light on the Palos Verdes Penins...
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Though the housing market is displaying some signs of health, economists say they could be misleading.  That’s the latest word on various signs of market improvement that have recently surfaced.  In an article in the Los Angeles Business Journal written by David Haldane and published on November 9, 2009, Palos Verdes real estate showed the most dramatic change, “where sales volume increased by 533 percent.”  However, many analysts of real estate in Palos Verdes are not as impressed by this outstanding development.  “Experts viewed the rising prices as further evidence that the real estate market has stabilized, at least temporarily. But some cautioned that it may be falsely propped up by government stimulus programs that eventually will end.”

Muhammed El-Hasan wrote on October 26, 2009, in the Daily Breeze, that the South Bay region also saw an unexpected rise in median home price, perhaps due to the increase in demand for homes in the area.  One reason for the sudden increase in sales and rise of home prices is that “we are showing the month’s inventory is going way, way down, by something like 60 percent from September of last year to September of this year.”  With fewer homes on the marker, there are more bids on each home, thus creating an environment for bidding wars.

Because of its relatively protected community arrangement and the type of properties and Palos Verdes real estate, the premier peninsula area has been largely protected from large foreclosure rates that have doomed many other neighborhoods in Los Angeles and Southern California.  The Los Angeles Times reported on November 12, 2009, that “the number of foreclosures dropped in October for the third consecutive month, a sign that efforts by banks to take back troubled properties may be easing.”  A three-month decline is an unprecedented accomplishment which analysts believe at least show minor signs of market recovery.

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San Bruno real estate

December 2, 2009 by · Leave a Comment
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YouTube's current headquarters in San Bruno, C...
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Real estate in San Bruno has recovered from a slight dip in home property valuation that occurred between December 2008 and June 2009.  During that time, the market value average of homes in the area dropped from over $560,000 to about $540,000.  According to the most recent Yahoo! Real Estate update on November 16, 2009, the 1-year market value change now shows no change, with the value increasing to about $560,000.  The price for foreclosed homes has remained remarkably high and currently sits on a median price of $509,790, just $40,000 lower than the median price of all other homes on the local market.

San Bruno real estate is expected to see a significant rise in home purchase closures following the United States government’s decision to extend and expand the first-time homebuyer’s federal income tax credit.  According to Eve Mitchell’s report in the Oakland Tribune on November 16, 2009, “The law extends until June 30, 2010, the deadline for closing escrow for first-time homebuyers to receive a credit worth up to $8,000. The credit was set to expire Nov. 30. It also adds a credit worth up to $6,500 for taxpayers who buy a replacement primary home provided they have lived in their existing home for at least five of the past eight years. Qualifying income limits were raised substantially for both groups of buyers for homes purchased Nov. 7 or later.”

However, San Bruno homes for sale aren’t completely out of the woods yet.  In fact, J. W. Elphinstone of the Associated Press and Oakland Tribune wrote on November 15, 2009, that buyers are still very cautious in home buying decisions, according to recent survey results.  The uncertainty of the market is still quite visible for all people, the article says.  “Home prices rebounded this summer at an annualized pace of almost 7 percent, according to the Standard & Poor’s/Case-Shiller home price index. But with high unemployment and foreclosures clouding the picture, economists debate whether prices will dip again.”  More shockingly, “Forty-five percent of Americans worry that they or someone they know will face foreclosure in the next year. And almost 30 percent of those with a mortgage have contacted their lender in the past year to reduce their payments.”  Real estate in San Bruno also suffers from an uncertain surrounding community.  With the national unemployment rate topping 10 percent and the local San Bruno numbers matching these staggering figures, it’s no wonder why the market will continue to struggle, although it will begin to ease as the pains of the global recession begin to lessen.  Experts predict that with increasing job placement in San Bruno thanks to local college recruitment events and job fairs open to the community, there will be a larger number of capable home buyers who will help to re-stimulate the neighborhood housing market.

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