Local Market Update
Housing Market Continues Recovery: Sales and Prices Improving in Many Communities So much for a Spring break in the housing market! Home sales and median sale prices in the Bay Area continue to rebound, with much of the improvement coming from the mid and even higher-price ranges, including the luxury market. MDA DataQuick, the La Jolla-based research firm, reported that March sales and prices hit a three-year high in the Bay Area region. The median price of $380,000 paid for a home was 31 percent higher than a year ago. Some 6,992 new and resale single-family houses and condominiums closed escrow in March, up 40.2 percent from February and up 10.5 percent from March 2009. What is encouraging about the latest report is that there were more sales of medium and high-end non-distressed properties and fewer foreclosures compared to a year ago. Foreclosure resale accounted for 31.7 percent of Bay Area existing home sales last month, down from 36.3 percent in February and 50.2 percent from a year ago. I think buyers are becoming more confident about purchasing a home now as the economy continues to show positive signs of a recovery and the stock market moves higher. Additionally, buyers are jumping into the market to take advantage of tax credits as well as mortgage interest rates, which could rise in the months ahead. It’s important to remember that any road to recovery has its share of obstacles and potholes. There are still challenges ahead to the housing market, including stubbornly high unemployment and the expectation that another wave of bank-owned properties could hit the market in many areas before too long. Still, I am encouraged by the DataQuick report that things are moving in the right direction again.