Home sales drop across Bay Area
By Lara Moscrip, Bay City News Service
January 24, 2007
Homes sales in the Bay Area decreased 22 percent in the fourth
quarter from the same time period last year, according to a report
released today by the research division of Prudential California
The report confirmed that home price appreciation was stable,
rising by 1 percent across all housing types from the fourth quarter
According to Scott Kucirek, the general manger of Prudential
California Realty in Pleasanton, "the sharp rate of the downturn
has definitely decelerated. Unit sales are still down considerably
from 2005 levels, however the decreases became smaller each quarter
as the year ended.
At the same time, the rate of new listings coming to the market
leveled off and dropped."
Although it's still early, these are positive signs that the
market is finding its legs in this correction and stabilizing,
In the fourth quarter 2006, the median price of a single-family
detached home in the Bay Area increased 2 percent, from $729,183
in the fourth quarter 2005 to $740,615. However, home sales are
down 23 percent from the fourth quarter 2005 to the fourth quarter
There were 14,147 single-family detached homes sold during that
period as opposed to 10,970 homes sold in the fourth quarter of
2006, according to the report.
Houses are also staying on the market for a longer period of
time in the Bay Area, according to the report.
Single-family detached homes spent 18 more days on average on
the market from this time last year.
According to the report, the glut of mid-year inventory shifted
the market from a strong seller's market to a buyer's market in
a short time period, with buyers having the chance to make demands
for price reductions.
This had an impact on house inventory levels in the fourth quarter
2006 as some homeowners removed their properties from sale and
chose to wait and see how the market would fare before listing.
Houses in San Francisco spent nine more days on average on the
market and houses in Napa spent an average of 47 more days on
the market, from the fourth quarter of 2005 to the fourth quarter
Kucirek said, "although there is some consumer apprehension,
demand for homes remains solid in the Bay Area, and in the fourth
quarter it was buoyed by a rebound of hiring in the tech sector.
Currently, we are still in a transition period and it will take
the spring market to really see where the market nets out in terms
of both activity and price resiliency."
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