San Francisco Bay Sales Reach One-Year High
22 July 2011
Property sales in San Francisco's Bay area reached a one-year high in June, increasing by 14.5% compared to sales in May. Much of this increased demand came from interest in lower-priced properties costing less than $300,000, while the continuing high number of distressed properties including foreclosures and short sales proved more popular than new homes to local buyers and investors.
This region has fared a lot better than others, as there are many high-tech industries which haven't been as hard hit during the economic downturn. The sales for June were the highest since June 2010 which is when homebuyer tax credits came to an end. The median price also increased slightly but is still less than a year ago, for the ninth consecutive month.
There were 7, 998 new and resale properties sold in the nine county Bay areas in June, and although this is 14.5% more than the previous month it is still 4.5% less than June 2010.
The average number of sales for June is normally 10,129, according to figures from DataQuick who have been collating statistics in the area since 1988. However the 14.5% increase on the previous month is nearly triple the normal increase from May to June, and was reflected throughout much of the state.
It could be that continuing low mortgage rates and low prices are the cause, and high-tech industries are definitely feeling more confident even though overall consumer confidence remains low.
However one month's recovery isn't enough to predict a trend. The median price of a property sold in the Bay Area in June was $377,750, an increase of 1.5% on May, and the highest since November last year when the median price reached $380,000. It also 30.3% higher than the lowest point of the current cycle, in March 2009, but is still 43.2% below peak prices reached in July 2007.