Home Sales Up-Prices Down
According to the California Association of Realtors, C.A.R., home sales increased 18.1 percent in May in California compared with the same period a year ago, while the median price of an existing home fell 35.3 percent.
“Home sales exceeded 400,000 last month for the first time since early 2007. While this is a welcome sign for the market, it was due in part to the large share of distressed homes for sale in many parts of the state.” said C.A.R. President William E. Brown. “Sales also rose above their year ago levels for the second month in a row after 30 consecutive months of year-to-year decreases. The lower prices associated with distressed sales along with favorable interest rates both contributed to higher sales levels.”
Sales in Dublin Ranch do not seem to be mimicking the state average. Last year we had 17 homes sell in May and this year only 8 homes sold. However, the number of short sales and foreclosures i.e. distressed homes, are definitely up. In May of last year none of the homes that sold were distressed, this year 5 out of the 8 homes that sold were distressed.
The good news is prices haven’t fallen as much in our community as in the state as a whole. Prices of single family homes were down 22.1 percent from May of last year and prices of townhomes and condos were down 14.4 percent from May of last year.
The Dublin Ranch Home Team
2 comments:
The home prices remaining stable in Dublin is only "good news" for people who already live there. The reason they aren't selling is because sellers have been very reluctant to reduce prices, so the homes are just sitting. My wife and I would love to purchase a home in the area, but on $100,000 household income it's impossible unless we want to move to Tracy. We're not going to be like all those people who bought $550,000 units at the Terraces with interest only loans or Pay Option ARMs. With a lot of those recasting soon, there should be quite a bit of inventory hitting the market at favorable prices to us. When we can get a 2/2 for what I consider a fair price ... $250,000, then we'll buy.
One more thing I forgot to add; speaking of reluctance to reduce prices -- Toll Bros. still has new homes at the Terraces listing for far more than the preowned units are selling for. It's time for them to wake up and cut prices, and with a lot of new inventory coming on line (two new buildings almost ready) the supply of unsold units is only going to increase unless they do so.
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