Bay Area Home Sales and Prices Surge in November
Bay Area median home prices and home sales continued to surge in November.
DQ News reports:
La Jolla, CA.–The Bay Area housing market continued its march toward normalcy in November, with strong sales and rising sale prices fueled by increased demand, strained inventory, record-low mortgage rates and robust investor interest, a real estate information service reported.
A total of 7,296 new and resale homes were sold in the nine-county Bay Area last month. That was down 6.4 percent from 7,795 in October, and up 15.5 percent from 6,317 for November 2011, according to San Diego-based DataQuick.
A drop from October to November is normal for the season. Last month’s sales count was the highest for any November since 8,042 homes were sold in 2006. November sales have varied from 5,127 in 2007 to 11,906 in 2004. The average for all months of November since 1988, when DataQuick’s statistics start, is 7,873.
“Current trends are likely to stay with us well into spring, at least. One of the variables that could really impact the market would be supply – how many homes are put up for sale. There are still mortgage finance issues. Some loan categories are not active. But right now, low mortgage interest rates make up for that. With the mismatch between supply and demand, there’s upward pressure on prices,” said John Walsh, DataQuick president.
The median price paid for a home in the Bay Area was $438,000 last month. That was up 5.3 percent from $416,000 in October and up 20.5 percent from $363,500 in November a year ago. Last month’s median was the highest since August 2008, when it was $447,000.
The low point of the current real estate cycle was $290,000 in March 2009. The peak was $665,000 in June/July 2007. Around half of the median’s peak-to-trough drop, as well as about half the median’s year-over-year increase this November, was the result of a shift in the sales mix. For example, today far fewer lower-cost foreclosures are re-selling compared with a year ago, and there are a lot more homes selling in the more expensive move-up markets.
The number of Bay Area homes sold in November for less than $500,000 decreased 12.7 percent year-over-year while the number sold for more increased 36.0 percent, DataQuick reported.
