I read in this mornings San Francisco Chronicle an article, State’s home sales have a baffling 17.5% jump, that the number of homes sales had a surprising jump of 17.5% when comparing June 2008 to June 2007 according to the California Association of Realtors (CAR). Reading deeper, the article went on to say despite this gain in numbers, there has been a continuing annual decline in values of 37.7% to $368,250 for all home types. The article also pointed out how CAR’s statistics didn’t jive with those of DataQuick which showed an 8.1% decline in statewide sales for the same period. However further on in the article is what I found the most interesting:
Among the California homes sold in June, 41.9 percent were foreclosure resales, compared with 6.6 percent a year earlier, DataQuick said. The Realtors group noted that sales of homes priced under $500,000 represented 67 percent of all sales, up from 40 percent.
This is consistent with everything I am experiencing in my effort to continue on with my real estate sales during these times. Just read my The $64 question post on July 18th to get a true sense of what is happening to real estate values here in the Napa Valley.
As those who read my blog regularly know, there are always two sides to every story and now that we have the YIN, let us have the YANG (excuse the obvious pun based on upcoming events). In another newspaper I was reading this morning, my local Napa Valley Register, there was an ad from my own company with this graph, again from CAR.
What many of us do forget during these tough times, especially those currently hurt by foreclosures, short sales and all having to sell their home during these down market times, California home ownership has been a true pot of gold over the long haul. I do feel the pain of many of my clients who I am in contact with quite often these days and do hope all of them are among the lucky who can wait out this down period. I am certain past down-turns were as bleak for all those caught up in each but somehow managed to get through them. Hopefully you are among the fortunate and will remember this as another such cycle in the continuing saga of the ups and downs of all things, especially real estate values. This is the third such I have been through in my 25 years selling real estate and I too sometimes overlook the big picture, the 40 Year Average Appreciation 7.87%. Just wait till next year, maybe the year after, but it will change.