Danville California Real Estate Market Update

Posted on November 10, 2008
Filed Under Real Estate |

bDanville California Real Estate Market Not What The Media Says/bbrbrThe latest figures for the nine San Francisco Bay Area counties showed a 45% increase in sales volume and a 35% drop in median price for September compared to last September. Although the Danville California numbers are accurate they are not what they seem to be because, as you know, we are in a very unusual, even historic market.brbrYes, a href=http://www.theharperteam.com/our-team/free-market-details/ target=’_blank’Danville/a home values are down, but not 36%. Many more Danville California lower cost homes are selling than last September, but the number of higher priced and luxury homes sales are down substantially. Jumbo loans, loans above $729,500 with a few exceptions this year, are much harder to obtain so many more lower cost homes are selling.brbrLower cost homes have dropped dramatically in price mainly because of a large number of foreclosures (bank owned properties, REOs) and bank short sales (banks negotiate with the owners to lower the principal amount of the loan when the owner has a buyer for the home. This keeps the Danville California home out of foreclosure which is costly for a lender, but usually not as costly as foreclosing).brbrbMedian price has plummeted for several reasons:/bbrulliRegion wide price depreciation, which varies by location/liliSignificant shift toward a higher portion of sales occurring in lower-cost inland markets/liliThe relatively high cost and qualifying difficulties associated with the jumbo loans used to finance pricier homes/li/ulbrPrices in some coastal areas continue to hold up much better, but sales arenrsquo;t shooting up by as much, if at all. Nearly 42% of all existing homes sold across the Bay Area last month had been foreclosed on at some point in the prior 12 months, but only up 6.9% from the previous year.brbrSales figures from the Contra Costa Association of Realtors stats that cover 14 communities from Orinda to Danville California for September compared to last September show: Closed sales up 65% for homes amp; up 10% for condos - Pending sales up 76% for homes amp; up 74% for condos/townhouses.brbrChained-homeThere is NOT an excess of homes/condos/townhouses on the market compared to the rate of pending sales over the last 30 days. Active listings are down 17% for homes amp; 30% for condos/townhouses.brbrIn our Danville California area, home values have held up comparatively well compared to the inland areas with lower priced homes and a lot of new construction over the past five years that have led to numerous foreclosures and short sales along with dramatic drops in prices. Lamorinda, Walnut Creek, Alamo, Danville, San Ramon, Pleasanton, and Fremont home values are holing up relatively well because of the low number of foreclosures and short sales.brbrIf you would like more detailed a href=http://www.theharperteam.com/ target=’_blank’San Ramon California/a information, bcontact Paul (925) 963ndash;4246/bbrbrIn the long run Danville California real estate remains one of the best financial investments. Our FREE Market Reports provide you with the best weekly market trend information available.brbrbSearch a href=http://www.theharperteam.com/ target=’_blank’Pleasatnon California/a Homes for the One YOU Want/bbrbrbOctober Stats In/bbrThe Months of Inventory increased by .78 of a month, up .21% compared to October 2, 2008. The increase was from 3.74 months to 4.54 Months of Inventory. Only two areas had a reduced number compared to twenty-five areas had an increased number. The highest number of pending sales were in Oakland with 323, 5.25 Months of Inventory, Antioch with 289, 3.05, and Hayward with 244, 3.79. It appears that these three areas are areas having a large number of short sales/foreclosures in these areas at greatly discounted prices.

Tags: Real Estate

Danville California Real Estate Market Update

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