Real Estate Articles
REALTOR®: Bay Area Home Sales Lowest in Two Decades
It’s a good time to buy a home in the Bay Area
A real estate information service reported this month that Bay Area home sales plunged below 4,000 transactions for the first time in over 20 years during the month of January, due to the credit crunch and uncertainty among buyers, sellers and lenders. Realtors, on the other hand, note conditions are not as grim they seem and actually present a window of opportunity for those interested in buying a home on the Peninsula.
A total of 3,586 new and resale houses and condos sold in the Bay Area in January down 29.2 percent from December, and down 41.9 percent January 2007, DataQuick Information Systems reported.
Last month's sales were the lowest for any month in DataQuick's statistics, which go back to 1988. Sales have decreased on a year-over-year basis for 36 consecutive months. Prior to last month the slowest January was in 1995, when 4,326 homes sold. The strongest January, in 2005, posted 8,298 sales. The average for the month is 6,319 sales.
The median price paid for a Bay Area home was $550,000 last month, down 6.4 percent from $587,500 in December, and down 8.5 percent from $601,000 in January last year.
“There will be plenty of debate over the meaning of these extraordinarily low sales and the bigger drop in the median price. Some will insist demand has dried up in the absence of loose lending standards, with no turnaround in sight. Others will argue it's just a lull caused by temporary market turbulence, with brighter days just ahead," said Marshall Prentice, DataQuick president.
“What's clear to us," he continued, "is the credit crunch that struck in August had a sharp and immediate impact on Bay Area sales and median prices. The 'jumbo' loans the Bay Area relies on so dearly got pricier and harder to get, and their use has plummeted. The statistical picture could change quickly, though, if the government's effort to raise the conforming loan limit reignites $500,000-plus home sales. We could see significant gains in both our transaction totals and median prices."
Home sales and the median home price in all counties in the Bay Area declined, with the exception of Marin County, where the median home price of $845,000 was up 1.8 percent from the pervious year. Dataquick reported price declines steepened in January, especially in inland markets hit hard by foreclosures.
In San Mateo County, DataQuck reported home sales dropped 40 percent compared with the same period last year and the median home price was pegged at $675,000, down 8.2 percent from January 2007, when the median was $735,000.
San Mateo County Association of REALTORS® President Sue Walsh said serious buyers should take advantage of current market conditions. “If there is a window of opportunity to purchase a home anywhere in the Peninsula, it is now. We are seeing one of those windows as we have in the past, and they don’t come very often, so if you are serious about purchasing a home, it is a good time to do so.”
Walsh, who is a Realtor with Cashin Company in Burlingame, said sellers can also take advantage of current market conditions by preparing their home so they receive the maximum return. Most important, she said they have to be being realistic about pricing their home.
“Buyers today are more choosy. Little things make a difference to people. Most people don’t want to have to do the work and often, don’t have the time nor the money. So as much as possible, the house you sell should be in move-in condition,” said Walsh.
She urged buyers and sellers should seek the advice of a Realtor.
“Whether buying or selling a home, because you are dealing with a large amount of money and it can be a very emotional situation for you, you should seek the assistance of a skilled Realtor who can negotiate for you,” said Walsh. “It is critical to have someone who is experienced and objective to advise you regarding this most important decision of your life.”
The San Mateo County Association of REALTORS® (SAMCAR) is a professional trade organization representing over 3,800 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula. SAMCAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in San Mateo County.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please contact Rose Meily at SAMCAR Public Affairs, e-mail , or phone (650) 696-8200.
