Sept' 09 Bay Area Real Estate Market Activity Results

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Here it is the first of October and the September Market Activity Results for the Bay Area are posted to our website, www.BayAreaMarketMetrics.com.  When we made the decision to provide market activity reports one of our requirements was that the data be available immediately at the end of the month.  Our commitment to you is to have the reports on our website by the second business day after month end.

While on the topic of market reports, The National Association of REALTORS® reported that Pending Home Sales were up for the seventh straight month.  NAR maintains what is called the Pending Home Sales Index and it stood at 103.8 up from 97.6. This is the highest reading since July 2007. A reading of 100 is equal to the sales activity level in 2001.

At the regional level, pending home sales were up in all four areas of the country, in both monthly and annual comparisons.

The West saw the strongest growth, with pending home sales up 16 percent from the previous month and 22.3 percent from a year ago, to an index reading of 130.5.

All of this is welcome news because the rise in pending home sales shows buyers have returned to the market and signing contracts, but sales are taking longer to close and there is more than the usual amount of fallout because of long delays related to short sales and issues regarding complex new appraisal rules and recently changed disclosure requirements.  I imagine many first-time buyers are rushing to beat the deadline for the $8,000 first-time home-buyers tax credit, which expires at the end of November.

From what we see in the market everyday is a housing recovery that is strong at some price points and weak in others.  In other words, it’s likely we’ll encounter some bumps and detours along the road to recovery.

A recap of September’s market activity reveals that the median price has flattened the past couple of months except in Alameda and Contra Costa counties where the median continues show strength.  Also, the number of closed sales has fallen, however the number under contract shows continued strength.  This is likely due to the factors already mentioned, i.e., delays with short sales, complex new appraisal and disclosure rules.

In all cases, the days on market and supply of homes for sale are at the lowest point in past year.  Take a look at the comparisons in the easy to read graph format at www.BayAreaMarketMetrics.com.  You may be surprised at what you see.  Reports can be customized to cities or neighborhoods, home size and price range.  For a custom report, just send me an email, russ@bayareateam.com.

Keep in mind, the market is very competitive under $900,000.   As a buyer or seller you want to be armed with information, have reasonable expectations, and be represented by a knowledgeable and experienced agent.  An agent who welcomes you as a client, values your business AND, an agent who is well qualified to help you navigate successfully through the process.

To be successful in this market a buyer needs to be represented by the very best agent, an agent that welcomes you as a client, values your business AND, an agent that is well qualified to help you navigate successfully through the process.