Check out the link to this month’s Reality Check from Coldwell Banker which takes a look back on the housing market in the Bay Area in 2011.
Of particular interest is CAR’s forecast of new home sales in 2012 – which stands at a sluggish 1%. However, this forecast encompasses the entire state of California and given the dynamic Silicon Valley market, which is adding high quality jobs, one can only hope that the local market will outperform CAR’s prediction.
The market is also seeing strength in the luxury high-end home segment specifically in Silicon Valley, San Francisco and the Peninsula with many homes for sale receiving multiple offers. There was some noticeable distinction in the mid market, where there was very few homeowners ‘trading up’ perhaps due to economic uncertainty.
Some hopeful signs for 2012..
- There seem to be fewer distressed sales
- As buyers become more active in the market place and inventories compress, pricing has begun to firm up
- Some banks have implemented procedural efficiencies for processing short sales, allowing for faster approvals
- The news media has finally started to question if we have reached a bottom, which will hopefully boost consumer confidence
Here’s to hoping 2012 marks a true turnaround in real estate market in California and specifically and Bay Area!