The other day a Burbed commenter wrote this:
Valley’s uptick eclipses state: As California faces long, slow recovery, local economy poised for quick rebound with tech help – San Jose Mercury News | SF Bay Area Home Price and Mortgage Insanity Blog – Burbed.com
September 16th, 2009 at 4:04 pm
I hate the Merc.
It’s always rah rah bull; almost worse than realtards.
Well how about this then!
Silicon Valley home sales dip in August; fewer bargains on the market – San Jose Mercury News
For the first time since January, both the number of homes sold in Santa Clara County and their median price fell from the previous month, a surprising reversal in a housing market that had been steadily climbing out of the burst real estate bubble.
Home sales plunged 21 percent in August from July, a sharper drop than in any other Bay Area county, and the median price dropped to $515,000, a 5 percent decline from July and down 13 percent from August last year, according to a report Thursday from MDA DataQuick.
The numbers appear to reflect just how fragile the market is, with real estate professionals and analysts offering a number of varying reasons for the month-to-month changes, from fewer foreclosed properties listed for sale, to new rules that have resulted in longer escrows, to higher mortgage rates.
“Part of the midsummer pause in the market could have been caused by home shoppers becoming frustrated by market conditions they didn’t anticipate,” John Walsh, MDA DataQuick president, said in a statement released with the report, citing fewer cheap foreclosures and the high number of all-cash deals and multiple bids. “It might have driven some back to the sidelines,” he said.
The nine-county Bay Area saw the median price of previously owned single-family houses fall 8 percent from July, to $375,000.
“It’s not unusual to get 10 offers” on “reasonably” priced foreclosure properties, said Judi Seip, an agent with Coldwell Banker in Cupertino.
Some are intentionally underpriced, other agents said, which sometimes means 20 or 30 bidders make offers.
One of Seip’s clients recently offered about $16,000 more than the asking price on a home priced about $440,000, and had a 50 percent down payment, but still lost the house to another bidder. Seip said she’s working with several buyers who hope to find homes and close escrow by Nov. 30, which is the deadline to purchase a home and receive a credit of as much as $8,000 on federal taxes, an element of the economic stimulus plan. “What happens in December is anybody’s guess,” she said.
See? It’s not always rah rah news. But there’s no need to despair… it’s clear that the reason for this is that interest in houses have simply taken a nap. There’s so much hot startup activity right now (and look! facebook is break even!) that people don’t have time to shop around for houses.
Come this spring… back to July 2007 prices! You heard it here first!