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Signs of Life

October 7, 2009 by Dana · Leave a Comment 

Sometimes you know what the answer is before you do the research.  When you’ve been in a business for a long time, you begin to get a feel for the subtle shift in activity that impacts your results.  Residential real estate is no different.  In the months following the near collapse of the financial system in September of last year, our local residential real estate market* hit a wall. At the beginning of this year, median prices fell to $662,500 with only 40 homes sold, a low that had not been seen since 2003.  And just now we are starting to see signs of life.
 
So what and where are these signs?  First, it is important to understand that the improved activity is neighborhood specific.  There has been a surge in activity in the areas that have a large mix of starter homes/condos, primarily due to the $8,000 tax credit for first time homebuyers.  Areas including Piedmont Avenue, Lakeshore, Central Berkeley, Adams Point, the Dimond and Laurel Districts have seen an increase in sales activity, competitive offers and/or a decrease in the required marketing period.  In addition, we are starting to see a rise in average prices per square foot or sales activity in areas that are close to shopping/coffee or have good school districts.  These areas include Rockridge, North Berkeley, Piedmont and the Elmwood District.  This appears to be the result of buyers taking advantage of historically low mortgage rates and more attractive prices in neighborhoods that were previously out of reach.  While quarter to quarter comparisons aren’t necessarily indicative of longer term trends, it is a positive sign to see pockets of improving activity. 
 
In terms of the broad numbers, the median price of the homes sold in our local market* fell to $729,000  (343 homes) for the quarter ended September 30, 2009, 5.9% below the median of $775,000 (403 homes) for the same quarter last year.  Sequential volume improved however, with the number of transactions up 11% from the quarter ended June 30, 2009.  

 
*detached homes over $450,000 in Albany, El Cerrito, Kensington, the hill areas of Berkeley and Oakland and Piedmont

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About Dana

Consistently one of the top producing residential real estate agents at The Grubb Company and in the East Bay, Dana knows what it takes to be successful in today’s market. With career sales of over $180 million in the Piedmont, Oakland and Berkeley market and over 90% of her business from referrals, she sets the standard for excellence with her knowledge, experience and integrity.