The National Association of Realtors is reporting a record 11.2 months of supply of homes on the market. Inventories in the 680 Corridor are mostly in the 4 to 6 month range.

Existing home sales nationally rose 3.1% in July over June's figure. The pattern of increased home sales suggests that much of the activity is occurring in parts of America where foreclosed homes are flooding the market and buyers are snapping up the deals.

Analysts at UBS are saying they don't expect a recovery in housing until mid-2009 and a Wachovia economist says, "We are not yet ready to call the current levels a bottom but clearly most of the declines are behind us."  Another housing market analyst says he thinks the market could easily sit at the bottom for at least a year.

The NAR reports new-home sales are projected to drop 8.8 percent to 464,000 in 2009 from 509,000 this year.

Homeowners hoping to wait it out until 2009 may have to wait longer. Another 5% drop in values and an interest rate hike of 1% could put a homeowner in a position of having to wait another two years to get what they could get today for the sale of their home.

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Another positive sign that the San Ramon Valley real estate market is starting to pick up.  Current months of inventory is down 25% compared to thirty days ago.

The micro-markets continue to have large variations. San Ramon Valley at 6.02 months and Alamo at 11.50 months – still a buyer’s market. 

This window of opportunity for buyers may be starting to close so there is no better time to buy than now.  Interest rates are below 6% for thirty year fixed conforming loans ($417,000). Conforming limits will most likely be raised substantially by Congress soon – this enhances the buyer’s opportunity. 

For the year 2007 the fourteen communities in CCAR, average prices were down approximately 4% & transactions off 16% compared to 2006. 

Real estate is a local business – always look for local real estate trends and local real estate market details. 

The national sales figures for 2007 were just reported by NAR.  Existing single family home sales were down 13% in 2007 on top of an 8% decrease in 2006.  Median price for 2007, $217,800, down 1.8% from 2006, the first national decline in 75 years.  We have been experiencing the results of the out of control speculative and frenzy markets of ’03–’05, that has created this buying opportunity.

EastBay Area Home Sale Activity

San Francisco Chronicle Charts for the month of September 2007

Reporting resale single family residences and condos as well as new homes

* % Change is from the same month last year
Price per Square Foot data is for single family resales only

California Home Sale Price Medians by County and City Home Sales Recorded in September 2007

Reporting resale single family residences and condos as well as new homes

Excludes sales where the site city is unknown
% Change is from the same month last year

California Home Sale Price Medians by County and City

Reporting resale single family residences and condos as well as new homes
 % Change is from the same month last year