Market Info Update!
Most homeowners want to understand how the current housing situation affects them and the value of their home. Recently, Leslie Appleton-Young (the Chief Economist for the California Association of Realtors) spoke at an all company meeting for Intero. I’m not going to review everything she said (which was substantial) but some of the highlights which might be helpful to put your own property in perspective.
First of all, we all know that home sales in California were a record high in 2004 and hit bottom in 2007 but have recovered somewhat in 2008. The median price of a home in California decreased in value by 44% between 2004 and 2007. No surprise here, consumer confidence has also greatly decreased during those years. However, sales of existing detached homes are up 12% over 2007. We see the biggest changes in sales in the price range under $500,000 (which actually has a 72% share of the current market)) and from $500,000 to $999,000, which has decreased in sales significantly (a little over 20% of the current market). The change in home prices over $1,000,000 is not as dramatic (consists of less than 10% of the market). The median price of existing detached homes is down 40.9% as of September 2008 and new housing permits are down 45.1% year to date.
The median price of existing detached homes in the Bay Area as of September 2008 is $554,730, down 29.2% year to date. The median time on the Bay Area market is 53.0 days with an unsold inventory index of 6.3 months. The median price of existing detached homes in Santa Clara County alone is down 29.0% year to date.
Closer to home, the median home sales price in Morgan Hill dropped 20.7% between August 2007 and August 2008 and in Gilroy dropped 37.4%.
I’ll have more tomorrow on the highlights of her housing market survey and predictions for the coming year.