February 2011 Home Sales in San Ramon, Dublin, and Danville

Both the neighborhoods of Dublin and San Ramon had a slow start with a drop in sales for January and February 2011. In San Ramon, there were only 32 closed sales of single family homes in January and 33 in February. This is a sharp drop compared to 53 closed home sales last December 2010. The average selling price in San Ramon also decreased to $710,000 in February from $748,750 in January, though the average price per square foot remained virtually unchanged at $299.

Listings in San Ramon stayed on the market for an average of 84 days in January. The homes were sold for 98% of the original selling price, compared to only 96% in February. The percentage of distressed properties in February was 36%, down from 44% in January. 36% of the homes were distressed properties (either short sales or REO). 8 homes sold more above $1 million.

In Dublin, there were only 18 closed sales in January and 17 closed sales in February, another sharp decrease compared to December’s 29 closed home sales. The average selling price of homes in Dublin also dropped 15% to $635,000 in February from $743,500 in January. The median price per square foot increased to $270 in February from only $263 in January.

Closed home sales in Dublin stayed on the market for an average of 59 days, which was definitely shorted than 148 days in January. The closings in February sold for 98% of the original list price down a notch from 99% in January. There were 53% distressed properties (either short sales or REO) in February compared to only 44% in January.

On the contrary, Danville was able to get back on track in February after a slight drop in January. In December, there were 42 sales in Danville. Then it suddenly dropped to 19 sales in January and finally recovered with 30 closed home sales in February. The average selling price went down to $780,000 in February from $820,000 in January. The average price per square foot also dropped to $289 in February from $297 in January. There 6 homes that sold above $1 million.

Danville’s closings stayed for an average of 88 days on the market in February, shorter than January’s 90 days. The homes sold for 96% of the original asking price, almost unchanged from January. There were 43% distressed properties (either short sales or REO) in February compared to 47% in January.

Existing Home Sales Improve – What Does This Mean For You The Home Seller?

In December, a report from the National Association of Realtors says that existing home sales surged by 12.3 percent, annualized this comes to a rate of sales of 5.28 million existing homes. In November, annualized sales were at 4.7 million. For the last half of 2010 five out of six months showed gains, according to Stuart Hoffman, chief economist at PNC Financial Services Group.

Existing home sales include finalized sales of single-family homes, townhouses, condominiums and co-ops.

However, looking deeper into the numbers, sales were down 2.9% from the earlier twelve months and in 2010 fell 4.7%. Prices for existing homes fell 1.0% from a year ago and there is over eight months of housing inventory at the present time.”The modest rise in distressed sales, which typically are discounted 10 to 15 percent relative to traditional homes, dampened the median price in December, but the flat price trend continues,” Lawrence Yun, National Association of Realtors chief economist explained. He continued, “December was a good finish to 2010, when sales fluctuate more than normal. The pattern over the past six months is clearly showing a recovery.”

Conclusions of industry experts agree – basically there is agreement that the existing home market has bobbled along for the past three years, and according to Hoffman, though the market for existing homes is weak, it is not getting weaker. Hoffman indicates that he expects the housing market to improve as employment improves and forecasts a 4 percent to 5% percent improvement by the end of 2011. Hoffman makes this prediction including the excessive numbers of foreclosures that are due to hit the market during 2011. He cautions though, that while sales will go up, prices will most likely suffer a downturn. Hence, it will remain a buyer’s market.

This is not good news for sellers. However, many agencies have a program called We Buy Houses. Some companies will negotiate with you and buy your house outright. Others are real estate companies that back up their commitment to sell your home in a certain agreed upon time period by promising to buy it at a predetermined price after the time has expired.

Homeowners who are able to make their payments but recognize they will have to wait for a long period for the value of their property to approach pre-housing bubble values ought to look at this program if they have to move or just want to cut their losses. Those in danger of foreclosure also should explore this kind of program.