We have been reporting over the last several weeks on the market shift for bay area real estate and in this blog I’ve included a graph showing the average price per square foot for single family homes in the city of Livermore. As you see it looks as if prices have bounced off of the bottom and are on the way up. Only time will tell if this is a trend or a short term uptick. My thoughts are that we have hit bottom and that we will see a short term uptick in prices and then a leveling off. I make this prediction based on the number of homes with distressed mortgages. I expect to see inventory rise beginning in the later half of Q2 and a large percentage of that inventory to be short sales.
The recent positive economic news both domestically and internationally has caused many investors to shift their investments and is beginning to have an impact on home mortgage rates. We are seeing many bay area homes sell with multiple offers and rates for all loan types begin to climb. The following video discusses exactly what is going on and what you should expect in terms of mortgage rates in the future. Take a look and give us a call in order to discuss your specific situation.
The inventory levels continue to fall for Bay area Real Estate and it has had a dramatic effect on the median sales price for single family detached homes in the East Bay Area city of Pleasanton. Much like most other bay area cities, we see that the inventory levels for single family detached homes began its downward trend in September of 2011 and has not shown any signs of turning around. These low inventory rates, along with record low interest rates and positive economic signs have pushed prices significantly higher over the last several months. I do expect to see levels beginning to climb in Q2 and as a result we should see prices stabilize through the summer months.
The number of active homes on the market for Bay Area Real Estate in the East Bay town of Alamo has been in a free fall since August of 2011. An interested statistic actually shows the average days on market increasing during the during the last several months with a recent flattening at 105 days. What we have seen over the last couple of weeks in many Bay Area cities and towns is that sales are picking up. This has served to flatten the average days on market ad provided an even steeper decline in active inventory. I expect this trend to continue through April with inventory increasing in late spring and through the summer.
As with other recent blogs, the following graph depicts the active inventory levels and median sales prices for Bay Area Real Estate in the East Bay town of Danville. This graph is very similar to many other bay area cities and towns and is a trend that we should continue to see for the next couple of months. This presents a golden opportunity for those wishing to sell within the next year or two as I expect to see inventory increase going into late spring with a large percentage of the new listings to be distressed properties (i.e., short sales, foreclosure). Call today for a free consultation to discuss your specific situation.
