First it was S. California, now it’s N. California. The San Freancisco Bay Area housing market continues its climb, both month over month and year over year, with increases in both prices and sales. Home sales were up 13.8% over November and up 13.6% from December 2008. This was the 16th month in a row of year-over-year increases and the highest sales count since December 2006.
The median price paid for a Bay Area home was $380,000 in December, up 15.2%$ from $330,000 for December 2008. Last month was the third in a row with a year-over-year median price gains, after 22 months of decline. The median hit bottom at $290,000 March 2009, well off the $665,000 peak reached in June and July of 2007.
“A couple of years from now, when looking back, there’s a good chance we’ll refer to the beginning of 2009 as the bottom of the market,” said John Walsh, MDA DataQuick president. (Read the full report here: Bay Area December home sales strongest in three years)
I have to agree with him. Home Sales are up. Median Prices are increasing. Supply of Homes for sale are decreasing. Does that mean you missed the best buying opportunities?
No. Let me explain why…
We have a bunch of new foreclosures headed our way, due to delays from the moratoriums last year, and failed efforts by lenders to do loan modifications (which are not all working. Read more here.). So we will have more foreclosures in 2010 then we did in 2009.
At the same time, lenders are not helping fund new construction, so builders have put a break on building more inventory. That is a good thing, as we would be very over supplied if builders had the money. At this point, all new inventory is pretty much foreclosure related.
But, we don’t have enough houses to buy right now, even with all the foreclosures? In fact, there are bidding wars on well priced homes everywhere in CA. The reason for this is that lenders are not putting their REO inventory on the market for sale. These properties, also known as “shadow or phantom” REO inventory exist… but they are not easy to find.
This is where our team at foreclosures.com steps in to help. If you want to learn how to find and close those phantom REO deals, you need to call 800-310-7730 x2 and speak with Jim, my Senior Consultant today. He will help get you on the inside.
Make sure you also reserve your seat to my upcoming Free Webinar “Find Wholesale Deals No One Else Knows About!” on February 3rd. It’s Free, but you must register in advance here. Talk to you soon..
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