October sees rise in prices and fall in sales for Bay Area homes
Sales for Bay Area homes dropped from last year but the prices have shot up again last month in the already expensive area.
According to research by Data Quick, average home prices in nine-county San Francisco Bay increased by 29.7% in a year and a 1.8% jump are noticed from September to October to reach $539,750.
About 7,595 properties including condos and newly built homes are sold this year. Though this number is 3.9% less compared to last year sales, there has also been improvement of 6.4% compared to September.
With the fall in distress property sales, the overall home sales have come down from 35% to 14% in a year that mainly comprised of foreclosed and short sales.
According to John Walsh, the President of Data Quick, the market is gradually coming back to stability, however, that is unlikely to happen very fast.
With improvements in the real estate market, prices have shot up all over the State along with the Bay Area; however, the additional catalyst can be the growth in tech industry. High salaried employees of this sector have aided the rise in price.
In spite of the market conditions, sale prices In the months of June and July, 2007, do not reach their peak of $665,000.