Hello Everyone,
The Federal Reserve, in an unexpected move, and one some think is premature, increased the Discount Rate Friday by .25%. Federal Reserve Chairman Ben Bernanke is scheduled to appear before the House and Senate in the coming week to explain the policy. Speculation is that with the jobless rate still in the area of 10% there will not be much further tightening in the near future, but that remains to be seen. Interesting article at: http://www.google.com/hostednews/afp/article/ALeqM5j_JKlWJuvyH9o86cq2-UrJdVTAZA
La Jolla, California-based MDA DataQuick, a real estate information service, in a February 18 article headlined "Bay Area home sales fall; median price up from last year, down from December" notes the number of Bay Area homes sold in January was below January of 2009, even though the median price was up. Full text of article available at:
http://www.dqnews.com/Articles/2010/News/California/Bay-Area/RRBay100218.aspx
Marin County, however, bucking the trend, with 144 Single Family Residences (SFR) sold to Feb. 16, as opposed to 98 during the same perior in '09, a 46.9% increase. Condo units sold up too, though less spectacular at 50 in 2010 vs. 47 in '09 or 6.3% more. Average sold prices up too, with SFR avg. sold price for the period at $1,037,231 vs. $846,678 in '09 and condo avg. sold price at $400,424 for 2010 vs. $287,949 for the same '09 dates. Caution is advised in interpreting these results. With a small sample size this early in the year, "market mix" can have a greater effect on the figures. Still, the numbers are at least interesting and bear watching.
Inventory still low, with 792 SFR's being actively marketed on MLS as of 2.16. This compares to 952 units at the end of February, '09. On February 16, 33.8% of active SFR units were in contract in all price ranges. The under-$1million price range still incredibly hot, with 46.4% of listed units in contract while at the upper end, $3million-plus properties still slow movers at only 7.25% in contract-- a tremendous opportunity for upper-end buyers.
Condominium inventory at 285 units on 2.16.2010 vs 312 at the end of Feb. '09. Over 39% of these were in contract. Condo's under $1million, the majority of the market, at 41.6% in contract.
Early results encouraging. Economy still iffy. Buyers still jittery. I will go out on a limb and predict a brighter 2010 for real estate. We shall see.
More next time.
Until then, best wishes to all,
Fred
p.s. for access to spreadsheets, please see
http://www.fredanlyan.com
Sunday, February 21, 2010
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