La Jolla, Calif.- The Bay Area housing market is making up for lost ground after the collapse of the housing market. At the end of 2012, sales increased year-over-year for the 18th month in a row and the median price rose at its fastest rate in more than 25 years according to San Diego based DataQuick. The market remained constrained by a tight supply of homes for sale and a fussy home loan environment.
The median price paid for a home in the nine-county Bay Area was $442,750 in December. That was up 1.1 percent from $438,000 in November and up 32.0 percent from $335,500 in December a year ago. Last month's median was the highest since August 2008 when it was $447,000.
The 32.0 percent year-over-year increase in the median is the highest in DataQuick's statistics, which go back to 1988. At least half that increase is due to a change in market mix, with sales shifting away from low-cost distress homes toward more mid-market and move-up homes.
John Walsh, President of DataQuick, says "Prices are in the midst of bouncing off bottom right now, and nobody really knows what the trajectory of this bounce will be beyond this point. So far, supply has been a bottleneck, but as prices go up, more homes will be put up for sale." He adds, "Another bottleneck these days is that mortgage lenders are swamped. Not only by home buyers, but by homeowners who want to refinance. Rising home prices also mean higher appraisals, and tens of thousands of homeowners who couldn't refinance half a year ago, now can."
The typical monthly mortgage payment that Bay Area buyers committed themselves to paying last month was $1,561. That was up from $1,544 in November, and up from $1,336 a year ago.
Indicators of market distress continue to decline. Foreclosure activity remains high by historical standards but well below peak levels reached three years ago. Financing with multiple mortgages is low, down payment sizes are stable, DataQuick reported.
All Homes #Sold #Sold Pct. $Median Median Pct.
Dec-11 Dec-12 Chng Dec-11 Dec-12 Chng
Alameda 1,584 1,623 2.5% $328,000 $410,000 25.0%
Contra Costa 1,534 1,530 -0.3% $259,000 $333,500 28.8%
Marin 280 291 3.9% $517,818 $660,750 27.6%
Napa 132 129 -2.3% $317,500 $350,000 10.2%
Santa Clara 1,611 1,822 13.1% $440,000 $544,500 23.8%
San Francisco 499 646 29.5% $594,500 $720,000 21.1%
San Mateo 602 626 4.0% $500,000 $600,000 20.0%
Solano 714 610 -14.6% $182,250 $218,000 19.6%
Sonoma 538 555 3.2% $279,500 $345,000 23.4%
Bay Area 7,494 7,832 4.5% $335,500 $442,750 32.0%
Source: DataQuick, DQNews.com
