At the beginning of each month I take raw data from our MLS to produce this report for the most recent market conditions.  These charts represent listings in all areas in the DAMLS, except “Out Of Area”, and differ from other Valley statistics that cover more specific areas. The last month data will possibly change, as some sales data entries are delayed.  It is updated in the next month.  Errors are generally small, but the result will give you recent sales data up to a month before other sources.  The prices stay much the same, but the numbers of sales are slightly smaller than actuals, because of late reporting. 

August Report

As of August 4 there were 5253 residential in-area listings on our MLS compared to 5805 on May 5, at median price of $299,00, down 14% since May 5. 

Looking back at the 1990's California housing bust, it took 10 years for prices to return to their peak, and that was a smaller bubble than we just had.  If the future held such a pattern it would mean a slow-growing, but stable housing market, where both Sellers and Buyers can work with relative confidence about the future.  Downward housing price pressures will continue for some time because of unemployment, defaults and economic uncertainty, but this could be offset by lower prices and the lower dollar bringing more buyers.  Subsidized lower interest rates also brought buyers. 

The banks are thought to be holding foreclosed properties off the market, and that may be driving down buyer interest, as we did see higher activity and better prices in the latter half of 2009 when the REO inventory was higher. My personal observation is a slight cooling in the last few months, as reflected in the graphs below.  The drop in June reflects our seasonal cycle, and increases the REO inventory.  Closings lag actual offers to buy by one or two months.

The following charts show the contribution of REO's to this market.