In the fourteen communities that make up the CCAR Statistical Report our local market hasn’t changed dramatically compared to last September despite the credit crunch that seems to be improving to some degree every day.

Months of Inventory:

• Detached: 10.2 months vs. 10.0 months last September
• Attached:  10.1 months vs. 12.8 months last September

Dataquick Figures: Resale, New, & Condos/TH

Median Sales Price compared to last September:

•      Contra Costa County     +0.2% to $551,250
•      Alameda County            -5.3% to $556,000
•      Nine Bay Area Counties  +0.8% to $625,000

Number Transactions compared to last September
     Contra Costa County         -48.7%
     Alameda County               -43.9%
     Nine Bay Area Counties      -40%

Jumbo loan financing (over $417,000) has become more available the last few weeks, but lenders have higher qualifying standards.  The standards are back to where they were three years ago, after the excesses over the past few years.  Mortgage rates are historically very attractive and more funds are becoming available.  There is a good possibility that the market will improve with each passing month.

Buyers need to understand that “the sky is not falling” in real estate despite what the media hype.  Now is a great time to buy.  With the slow down in transactions there has to be a growing pent-up demand that will surface in the not too distant future.  The overall Bay Area economy is strong, jobs are growing in numbers, and unemployment is very low.  The Bay Area is such a desirable place to live that demand for housing will always be here.