http://www.cloneyrealestate.com
Here's what we have seen so far:
Single Family Residence (SFR)
Overall inventory increased from 740 on January 6 to 770 on January 19 and percentage in contract increased from 27.8% to 29.8%. Homes under $1 million did even better with an increase from33.96% in contract to 36.49% while number of listed homes in that price range increased from 480 to 496. Homes in the $1million to $1.99 million range relatively stable at 21.38% in contract while listed units did increase by 11, to 159. Upper-end homes doing somewhat better than previously, with 9 of 44 listed units in contract as of Jan 19, or 20.45%. This compares to 17.39% at last report. Homes over $3 million also enjoying greater sales activity, with 6 of 71 homes on the market in contract (8.45% compared to 4.55% on January 6). YTD sales of SFR's as of January 19 were 38 units, compared to 51 in 2010, or down 25%, and DOM for homes sold during that period were 112, compared to the year-ago figure of 97. Average sold price at $885,616 compared to $1,233,119 in the same period a year ago. This appears to be an inauspicious start to the year but the number of sales is still very low so a "market mix" of lower-priced or less desirable homes can have an unbalancing effect on early-in-the-year statistics. In addition, we will have to remember during the first half of this year that we are comparing to 2010's skewed 1st and 2nd quarter sales resulting from the homebuyer tax credits.
Condo's
Overall inventory increased from 266 on January 6 to 271 on January 19, but the number of units in contract remained static at 94, pulling the percentage in contract down slightly from 35.34% to 34.69%. There was only one condo over $1million in contract of the 10 units on the market on January 19, or 10%, matching the level on January 6 when we last reported. YTD sales of condo's as of January 19 were 16 units, compared to 20 in 2010, or down 20%, and DOM for condo's sold during that period were 126, compared to the year-ago figure of 114. Average sold price at $321,006 compared to $334,841 in the same period a year ago. Please see remarks above under SFR's regarding these statistics which one would hope are not a harbinger of the year ahead!
http://www.cloneyrealestate.com
Wednesday, January 26, 2011
Wednesday, January 12, 2011
Realtors Encouraged by Signs that Economic Recovery
With the holidays behind us and a brand new year underway, Realtors, home sellers and buyers are all wondering what 2011 will bring to the Bay Area housing market. After a choppy 2010 that saw strong activity early in the year and a softening in the second half, Realtors are encouraged that recent improvement in the economy could bode well for the housing market.
The real estate market is so closely aligned with the fate of the overall economy, the stock market and consumer confidence. In general, all three of those economic indicators have been recovering in recent weeks. And this week in particular gave housing market professionals reason for encouragement.
In his first appearance before the new Congress, Fed Chairman Ben Bernanke gave a more upbeat assessment of the economy than he has in the past. "We have seen increased evidence that a self-sustaining recovery in consumer and business spending may be taking hold," the central bank chief told lawmakers.
Bernanke and another senior Fed official, New York Fed President William Dudley, said today that leading indicators for the labor market are pointing to a likely pickup in the pace of employment gains over the course of the year.
At the same time, the financial markets have rallied in recent months. The S&P 500 and the NASDAQ have risen 10% and 12%, respectively, over the past three months. Many Silicon Valley companies continue to report strong sales and profits over the past year. All of this undoubtedly is having a positive impact on consumer confidence.
Finally, this past year’s holiday season provided some welcome news for retailers. U.S. retailers posted the strongest revenue growth since 2006. A Thomson-Reuters index of 28 leading retailers showed sales rose 3.1% at stores open less than a year.
But in all likelihood, the road to recovery will continue to be slow and occasionally bumpy. Don’t be surprised to see extremely upbeat economic numbers one month and a small setback the next.
For example, the Labor Department reported that the nation's economy added 103,000 jobs in December and the unemployment rate dropped to 9.4% last month, its lowest level in 19 months. But the job growth fell short of expectations based on a strengthening economy. And the drop in unemployment was partially due to people dropping out of the labor force.
Nonetheless, despite two steps forward and one back, the overall economy appears to be trending upward. I’m cautiously optimistic the same will be true for our housing market in 2011.
http://www.cloneyrealestate.com
The real estate market is so closely aligned with the fate of the overall economy, the stock market and consumer confidence. In general, all three of those economic indicators have been recovering in recent weeks. And this week in particular gave housing market professionals reason for encouragement.
In his first appearance before the new Congress, Fed Chairman Ben Bernanke gave a more upbeat assessment of the economy than he has in the past. "We have seen increased evidence that a self-sustaining recovery in consumer and business spending may be taking hold," the central bank chief told lawmakers.
Bernanke and another senior Fed official, New York Fed President William Dudley, said today that leading indicators for the labor market are pointing to a likely pickup in the pace of employment gains over the course of the year.
At the same time, the financial markets have rallied in recent months. The S&P 500 and the NASDAQ have risen 10% and 12%, respectively, over the past three months. Many Silicon Valley companies continue to report strong sales and profits over the past year. All of this undoubtedly is having a positive impact on consumer confidence.
Finally, this past year’s holiday season provided some welcome news for retailers. U.S. retailers posted the strongest revenue growth since 2006. A Thomson-Reuters index of 28 leading retailers showed sales rose 3.1% at stores open less than a year.
But in all likelihood, the road to recovery will continue to be slow and occasionally bumpy. Don’t be surprised to see extremely upbeat economic numbers one month and a small setback the next.
For example, the Labor Department reported that the nation's economy added 103,000 jobs in December and the unemployment rate dropped to 9.4% last month, its lowest level in 19 months. But the job growth fell short of expectations based on a strengthening economy. And the drop in unemployment was partially due to people dropping out of the labor force.
Nonetheless, despite two steps forward and one back, the overall economy appears to be trending upward. I’m cautiously optimistic the same will be true for our housing market in 2011.
http://www.cloneyrealestate.com
Subscribe to:
Posts (Atom)
