East Bay California - Housing Inventory

The total Months of Inventory has been holding fairly steady for the past several months with August 3rd showing a 4% decrease for twenty-seven East Bay communities in Alameda and Contra Costa counties compared to July 2nd. Seventeen were lower, nine higher and one even with last month. Overall active listings decreased by 3% and pending sales increased by 3%. August 3rd overall average was 4.60 months compared to 4.49 on July2nd.

These figures only measure market activity compared to what is available for sale.

It is a snapshot to where the market is today, buyer’s, seller’s, or balanced market. These figures tell you nothing about prices, values, or how many days it takes to be a pending sale. Check with your local Realtor for this information.

Although it is a buyer’s market, historically 4.60 months of inventory would be a balanced market. This unique situation of having a large number of short sales, foreclosures, and lenders higher qualifying standards, plus the shortages of funds for jumbo loans, has temporarily changed the definition of a balanced market.

We are experiencing a unusually high number of pending sales in the outlying areas where a lot of beginning price range new homes have been constructed over the past five years and have resulted in substantial price drop that have created some relatively good values. We are seeing less price drops in the more populated mid to higher priced homes.

We won’t go back to historical standards of Month of Inventory until most of the short sales, foreclosures have worked through the system, better liquidity of lender funds and some favorable coverage in the media.

In the bay area five months of inventory is considered a balanced market and National Association of Realtors states that six months of inventory for the nation is a balanced market.

The three markets with the highest monthly inventory - Alamo, Blackhawk, and Diablo - contain a greater percentage of high-end homes than the other communities. This reflects slow sales for homes above the $1.5 million price point.

Antioch, Brentwood, Oakley and Pittsburgh are reflecting the increase in sales activity as a result of buyers and investors snapping up foreclosures and bank owned properties in these communities.

Good deals for buyers and investors should continue for another 12 months, though the best deals are probably available now, as foreclosure property continues to become available.

For more information on East Bay, San Francisco Bay and Northern California real estate, visit HarperMee & Associates. You can request FREE Market Reports on most bay area communities here.

Related Post:

• Contra Costa County Foreclosures