East Bay Housing Data – Glen’s Numbers through July 2011

With confidence buckling and all the economic distractions we’re now witnessing, keeping pace with our local market statistics has taken somewhat of a backseat. My apologies for such a late post.

Following our round table discussion at our last Better Homes & Gardens agent weekly meeting, I came from it with the distinct impression that we’re now seeing many buyers fall into two camps:

1) Backing off and going on the fence again given all of the uncertainty.

2) Seeing the opportunity that exists. The bargain hunters are out and they’re feeding on the available low interest rates, having more homes available to pick from, and with less competition.

The July numbers

•For the third month in a row we’ve seen a slight decrease in inventory, a 6.2% drop since the end of April. This isn’t typical because we’re usually picking up steam this time of year. We saw nearly a 25.9% increase last year during the same period.

•The months supply for the combined 38 city area that I track is now 3.2 months.

• Our Pending/Active Ratio has increased slightly to 1.01, slowly returning towards a “normal” market range. Again, keep in mind that this number is overstated due to the large number of short sales that remain in pending status for longer periods than normal.

• Distressed properties, (REOs and Short Sales), are still a large part of our local markets. Although this is slowly becoming less of a factor with listings. 46% of the active listings, 73% of our pending sales (primarily due to the large number of short sales – 56%), and 50% of the sales over the last 4 months are distressed properties.

Other Recent News

Homebuyers have mixed reactions to market swings - Eve Mitchell, Contra Costa Times

“The past two weeks have certainly been a test for the Bay Area housing market. Wild stock swings, the credit downgrade and continuing concerns about the economy have certainly weighed on buyers, sellers and their agents.”

Mortgage rates fall to 30-year near record low -Derek Kravitz, Associated Press

“Fixed mortgage rates fell to at or near record lows. That’s good news for the few who can afford to buy a home or are able to refinance. But the rates have done little to lift the ailing housing market.”

“Many people can’t take advantage of the low mortgage rates. Banks are insisting on higher credit scores and larger down payments from applicants. Others have too little equity invested in their homes to qualify for loans.”

As always, I’m available if you want to talk about the market, or explore your options for buying, selling or investing in East Bay real estate. You can reach me directly at 510.333.4460.

You can download an entire copy of Glen’s East Bay Housing Numbers Through July 2011 here.