Surprising 2009 results for California real estate
Southland home sales up; median levels off.
The California real estate market continues to exist under the dark clouds of increasing foreclosure, bank phantom inventory and growing unemployment. In spite of these factors, the state managed to produce some very positive results in the larger markets. Way back in the dark ages of 2008, pundits and their hosts of commenters were adamant that the real estate market would be have reached a bottom until year over year price gains were experienced. Check out these results:
Southern California
SoCal finished 2009 strong with the median December price was 4% higher than in December 2008, the first year-over-year gain since August 2007, when prices were nearing the recent peak. December was the 8th straight month of monthly price increases. The number of December sales was 12% higher than a year earlier.
The increase in meidian price can be attributed to more sales in higher priced areas and less emphasis on the inland, repo market. 20.2% of th 22,338 December sales were for prices greater than $500,000.
Almost 25% of the purchases in December were for cash. Buyers with real money are very interested in homes at these price levels. The average mortgage payment for those who financed was $1,231 per month, 54% below the 2007 peak.
San Francisco Bay Area
According to DataQuick, the Bay area finished 2009 well ahead of 2008, price-wise. The median purchase price of $380.000 was 15% higher than in December of 2008 and 35% above the median low set in March 2009. Real estate experts are starting to believe that history will soon show Spring of 2009 as the market bottom.
According to the records, 22.7% of the homes sold in December 2009 were purchased for cash. The number of sales in the area was 13.6% higher in December 2009 than in the previous December. This market is still skewed towards lower priced homes with most of the sales going at FHA qualifying levels.
Sacramento Region
In the Sacrament region and especially in Sacramento County, foreclosures continue to hold back value gains. Sacramento County finished 2009 with the median price 0.6% above December 2008. Pricing was stronger during the last half of the year and the median foreclosure sale value increased by 4% in December over November. Mike Lyon, the owner of the largest real estate broker in the region had this comment:
…..prices for homes under $300,000 continue to appreciate at rates seen before the 2005 real estate market crash. “We do not see this slowing in the near future until interest rates rise by midyear”, said Michael Lyon, CEO of Lyon Real Estate.
2010
Foreclosures yet to hit the market continue to be the wild card for California prices. In the Sacramento area foreclosures hitting the market wer 22% higher than in December 2008 and 2010 the number is expected to exceed the 2009 levels by 15%.
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