Now that the year is more than halfway over, how have Alameda home prices
fared? After presenting the 2nd quarter Alameda market statistics at
our company last week, here were some common themes from the numbers.
Are smaller or larger homes in more demand right now? While 3 or more bedroom homes outsold 1-2 bedroom homes 2 to 1, demand
for smaller homes at a lower price point represented the most
significant demand based upon MSI. Months supply of inventory, or MSI,
represents the pace at which sales occur for a given section of the
market. At the current pace, 1-2 bedroom home inventory in Alameda are
selling at 2.8 MSI, that's more than a full month faster than the
overall MSI of 4 months one year ago.
Are Alameda homes selling at or near Original List Price?
what a home eventually sells for in relation to its original list price
is a solid indicator of demand. In the past five quarters there has
been a significant shift in the Alameda market. Overall, detached homes,
condos and townhomes are all selling at 99% of Original List Price
versus 95% from 15 months ago. While 4% may not sound like much, based
upon the past quarters Median Price of $542,000, that's $22,000 of
increased value to a Alameda homeowner!
Zip Realty released their Home Hunters Report on the 100 hottest zip
codes for areas with the most over asking price sales. 91 of the top
100 zip codes were in California. Of the 5400 metropolitan areas
surveyed, Florida primarily and some sun belt states recorded the lowest
sale price to list price. It is not uncommon right now in Alameda to
have multiple offers, although pricing, location and current demand for a
particular home play a large role in demand.
How much of a factor are distressed properties in Alameda?
let's define distressed. Using Foreclosure Radar criteria, distressed
properties could be defined as being all of the following:
Preforeclosures (Notice of Defaults filed within past 120 days), Auction
(properties currently scheduled to be sold at a trustee sale auction),
and Bank Owned (homes that have been sold back to the bank in the last
Bank Owned properties have decreased dramatically, 34% of sold
inventory this past January, compared to 18% this past June. When you
look at Bank Owned, Auction and Preforeclosures currently Active and
Pending inventory in EBRD MLS, distressed properties represent 26%.
That's down from previous levels and therefore, the lower prices
associated with these sales are having less of an impact.
Are Alameda home prices headed up or down?
to the 2nd quarter of 2009, Alameda's Median Home Price rose 7% overall
to $542,000, that's good news! It represents the fact that many more
higher priced homes have sold over the past year. In fact, the number of
sales of 3 or more bedroom homes increased 22% from the 2nd quarter of
2009. Condos and Townhomes showed a rise of both Median Price (4%) and number
of sales (55%) over the previous year.
More activity in refinancing or new mortgages?
If you ask any of our awesome local escrow officers, they'll tell you
refinancing has been hot this past quarter. The Mortgage Banker's
Association (MBA) this week announced results from
their Weekly Mortgage Applications Survey indicating the refi boom may
be waning. In it's wake, the demand for purchase mortgages was up 2%
from the previous week. Interest rates nudged up slightly to 4.69%.