Price of housing has been a roller coaster for most of the nation, and people are freaking out that their home value is going to tank. However, as the old saying goes, it’s all about location, location, location. With prices so high as they are here in the Bay Area, at least house prices are still creeping up even though the rest of the nation is starting to slide. So, as long as you bought in the Bay Area, you are looking good, despite all your complaining.
Home sales down 10.3% in U.S., 25% in California
The nation’s struggling real estate market continued to slide in May, at least according to a report today from the National Association of Realtors.
Nationwide, the number of existing houses and condominiums dropped 10.3 percent compared with a year earlier — to a seasonally adjusted rate of 5.99 million homes. The median price, meanwhile, dropped 2.1 percent to $223,700 — which the Realtors group said reflected stronger sales performance in lower-cost areas of the country.
“I think psychological factors are currently the biggest drag on the housing market, in addition to a disruption from tighter credit for subprime borrowers,” Lawrence Yun, the group’s senior economist, said in a statement.
“The market is underperforming when you consider positive fundamentals such as the strength in job creation, economic growth, favorable mortgage interest rates and flat home prices. It appears some buyers are simply waiting for more signs of stability before they get serious about getting into the market,” Yun said.
In California (certainly not one of those lower-cost areas), existing-home sales were down 25 percent compared with a year ago, according to the California Association of Realtors.
“Concerns about subprime lending will be with us well into next year, but improving economic conditions should bolster consumer confidence in the economy as we move through the second half of this year,” Colleen Badagliacco, the group’s president, said in a statement. “However, with prices holding steady or showing marginal declines in many parts of the state, affordability will continue to be a problem even with mortgage rates that remain near historic lows.”
The median price of a home in California was up 4.8 percent to $591,180. In the Golden State, tighter lending standards are bringing sales down in more affordable areas, while sales remain strong in more expensive areas closer to high-paying jobs. (For example, home prices in beautiful and industrious Santa Clara County were up 7.3 percent.)
The Realtors, by the way, base their data on sales through regional multiple listing services. The data we often report from DataQuick Information Systems, on the other hand, is based on public records.
Among the 10 most expensive communities in the state (based on public records) were five in the Bay Area: Los Altos, with a median price of $1.68 million; Burlingame, at $1.67 million; Saratoga, at $1.65 million; Mill Valley, at $1.29 million; and Los Gatos, at $1.23 million. (Must be nice.)
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