Bay Area REBlog

The median resale price of a single-family detached home in California for July was $350,760.  That’s a decrease of 40.3 percent from July 2007 and 4.5 percent from the previous month.  But unsold resale inventory represented a 6.7 month supply, compared to 10.7 months for the same period a year ago, and median number of days until sale was 48 in July, down from 51 for July 2007.

Sales are rebounding strongly and have increased almost 44 percent year-over-year after topping 400,000 in May and June.  Affordability continues to vary sharply by region but has increased significantly almost everywhere. Here in Santa Clara County the median price has ducked under $600,000 for the first time in our records.  But, its loss of about 20% for the year is less than most counties.  This is a county that is difficult to predict and we can all hope that Silicon Valley will come up with a flock of new discoveries and reassert itself as a money machine.

There’s no question, the result of foreclosures have drastically hindered our median sales price in many of our markets.  And for those sellers who are not under duress and are just looking to sell, they are forced to lower their prices dramatically just to compete. But we knew that the housing correction posed the biggest risk to our economy and that neither our economy or our market would recover until the bulk of the housing correction was behind us. The good news is that we have started to deplete much of our distressed inventory and should start to see a market rebound. No, it won’t happen overnight – first we’ll see a levelling off and then, ultimately, an increase in marketing conditions.

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