The Watsonville housing market

The Watsonville housing market, a part of the larger Santa Cruz County real estate market, showed signs of recovery along with the larger economy of the area. According to a May 27, 2010 article from the Santa Cruz Sentinel, “Santa Cruz County lost 5 percent of its jobs over the past two years, but it would have been worse without the steadying effect of agriculture. That’s the assessment of Jeffrey Michael, who heads the business forecasting center at the University of the Pacific and has been quoted in the Wall Street Journal and on National Public Radio.” The piece, written by Jondi Gumz, went on to state that “Santa Cruz is closely tied with Silicon Valley, which is seeing the strongest early recovery. The ag sector, which added jobs, has been a buffer; without it, the county’s job loss would have been 7 percent.”

The average price of a Watsonville real estate rallied strongly in the month of April along with the rest of Santa Cruz County. According to a May 24, 2010 article in the Mercury News, “Santa Cruz County saw fewer single-family homes sold in April compared to a year ago, but the median price rebounded from $420,000 to $553,000, the highest in 20 months, as distress sales dipped. Two years ago, the midpoint of what sold was $661,000.” The piece, also composed by Jondi Gomz, went on to say that “There were 121 sales in April, with 43 percent selling for under $500,000, compared to a year ago, when 132 homes sold with 57 percent under $500,000, according to Gary Gangnes of Real Options Realty, who tracks the numbers. Last month saw 33 bank-owned sales and 17 ‘short sales,’ where the home is sold for less than the debt, compared to 56 bank-owned sales and 11 short sales a year ago.”

An increase in the median price was also observed above the larger Bay Area, which includes the Watsonville real estate market. According to a June 14, 2010 report from the Sacramento Bee, “Redfin today released new data on the San Francisco Bay Area market showing that the median price of a Bay Area single-family home increased 9.9% from April to May, and 32.8% year over year.”

The Sunnyvale housing market

The Sunnyvale housing market, a part of the larger San Jose and Santa Clara County real estate markets, showed strong signs of improvement in the most recent tracking periods. According to a May 31, 2010 article in the Mercury News, “The local housing market continues to show improvement in sales and value of homes, though overall home sales in the nine-county Bay Area and the state as a whole, showed mixed results during the month of April, according to [the] latest real estate sales and price reports.” The piece, written by Rose Meily, went on to note that “MDA DataQuick reports sales for all new and resale homes and condos in Santa Clara County rose 3.1 percent in April compared with the same period last year. A total of 1,656 homes sold in April, up from 1,606 homes sold in April 2009. The median home price for all homes jumped 20.7 percent from $405,000 in April of 2009 to $489,000 this year.”

The performance of Sunnyvale homes for sale was a substantial improvement over the rest of the Bay Area, which actually saw a decline in home sales in the month of 2010. According to a May 20, 2010 article in the Silicon Valley/San Jose Business Journal, “Bay Area home sales fell slightly below the year-ago level and remained well below average in April, according to a report Thursday by MDA DataQuick. In April a total of 7,003 homes closed escrows in the nine-county Bay Area, up 0.2 percent from 6,992 in March but down 1.9 percent from 7,139 in April 2009.” The piece continued to explain that “Some of April’s sales activity might have been delayed until at least May as buyers decided to take advantage of new state tax credits that became effective May 1.”

The Sunnyvale real estate market was actually cited as one of the most improved in the United States. According to Businessweek, “Of the 50 largest metros, San Jose saw the largest increase in home prices, 8.3 percent year-on-year during the first quarter, according to CoreLogic data. This was driven by a decrease in inventory – supply of single-family homes in Santa Clara County dropped 19 percent year-on-year in May…”

Tempe real estate market

The Tempe real estate market, a small portion of the larger Maricopa County and Phoenix area housing markets, showed signs of improvement in the month of May, as foreclosures began to taper off. According to a June 10, 2010 article from the Arizona Republic, “A new Arizona State University real-estate report shows home foreclosures may be leveling off, but the author says it’s unclear if the trend will continue because of the number of defaults and late payments still plaguing the market. Foreclosures were 33 percent of the market’s recorded activity in May, down 40 percent in March, according to the latest realty-studies report.” The piece, composed by John Yantis, went on to state that “A number of issues will continue to affect the real-estate market, he said. Defaults and late payments remain at record levels, and they could be a precursor to additional foreclosures. Income may not increase enough for people to hold onto their current homes, especially if they are confronted with a change in an adjustable-rate mortgage that could reset in coming months, Butler said.”

The report itself went into more detail about the challenges confronting Tempe and Phoenix-area homes for sale. The Arizona State University study quoted professor of real estate Jay Butler as saying “The key question is whether this is a harbinger of the future of steadily lower foreclosure activity or a ‘blip’ with a return to higher levels. Defaults and late payments are still at record levels and could be a precursor of additional foreclosures. The main issues center on whether income will increase enough for people to hold onto their current homes and whether they can maintain payments on their houses, especially if confronted with a change in an adjustable-rate mortgage that could reset in coming months.”

The amount of land purchased in the Tempe housing market and other sectors of the Valley increased dramatically in recent months. According to a June 14, 2010 article from ABC 5 News, “Analysts say the Valley’s housing market could be showing another sign of making a comeback. Experts with Land Advisors, a Scottsdale-based brokerage firm, say home builders have bought $90 million dollars worth of land in the Valley so far in 2010.”

The East Bluff housing market

The East Bluff housing market, a subsidiary of the much larger Orange County real estate market, showed signs of strength despite a slight month-over-month decline in median price. According to May 24, 2010 article from the OC Metro, “Orange County’s median home price popped 13.7 percent in April, compared to the same time last year, according to a new report from the California Association of Realtors. The number rose to $491,120, up from $432,110 in the same month last year.” The piece, written by Kristen Schott, continued to say that “However, the median fell 0.4 percent from March, when the number hit $493,120. Statewide, C.A.R., which bases its figures on Multiple Listing Service data, is reporting that the median home price rose 21 percent to $306,230 compared to the same time last year. The number was $253,110 in 2009. The price also increased 1.5 percent from March.”

The average cost of an East Bluff real estate, compounded with other Orange County communities, saw a slight dip in the month of April. According to a May 18, 2010 article from the Orange County Business Journal, “Orange County’s median home price edged down $2,000 in April from March, but still stands $50,000 higher than the prices seen here a year ago. The median price of a home sold here in April was $430,000, a less than 1% drop from a month earlier, according to San Diego-based MDA DataQuick, a unit of Canada’s MacDonald Dettwiler and Associates.” The piece by Mark Mueller went on to note that “Median home prices are now about 13% higher than they were a year ago, but still are off nearly 33% from their highest level, seen in mid-2007.”

Despite this slight decline in median price, the East Bluff and Orange County real estate markets were still much stronger than surrounding counties. According to a May 18, 2010 article from OCLNN, “Orange County saw stronger gains in home sales and price compared to all other Southern California counties during April. The median home price in Orange County jumped 13.2 percent since April 2009, to $430,000…”

Aliso Viejo housing market

The Aliso Viejo housing market continues to face conflicting indicators, although most reports point towards an increasing median price. According to a June 10, 2010 article from the OC Register, “The latest home affordability calculations from the California Realtors Association show that for Orange County a minimum income of $69,770 is needed to afford a starter home ($413,680 median price in the first quarter.) Estimated monthly payment, including taxes and insurance, on an entry level home was $2,330.” The piece went on to state that “The recent “Paycheck to Paycheck” housing affordability report by the Center for Housing Policy suggests that $129,850 of income was needed in the fourth quarter to buy a median-priced O.C. home!…For the first-time buyers based on the number of households that can pay 85% of the median home price making a 10% down payment and assumes [the] buyer would spend 40% of his or her income on monthly house payments.”

The average price of an Aliso Viejo real estate increased significantly over year-ago levels in the most recent tracking periods. According to a June 4, 2010 article from the Orange County Register, “For the 22 business days ending May 18 – DataQuick’s latest real estate buying report – Orange County saw…$440,000 median selling price that is up 12.8% vs. a year ago yet -32% below June 2007’s peak of $645,000. A median of $440,000 was last seen in Orange County in August 2008.” The piece, posted by Jon Lansner, went on to say that “The most recent median is 19% above the cyclical low hit in January 2009 at $370,000 – a current bottom that was 43% below the peak…In this most recent period, Orange County shoppers bought 3,056 residences – that is +12.8& vs. year-ago buying activity.”

This same trend was observed across nearly three-fourths of Orange County communities such as Alison Viejo. According to a June 11, 2010 report from the Orange County Register, “57 of O.C.’s 83 ZIP codes had gains in their respective median selling price. Overall, prices were +9.9% vs. a year ago. Taking sales volume in consideration, home pricing is up in ZIPs representing 73% of the Orange County market.”

East Bay real estate market

The East Bay real estate market has been facing mixed signals in recent months, with some signs indicating the possibility of a renewed recovery and other pointing towards continued weakness. According to a March 11, 2010 article in ABC KGO News, “For the first time in a long time, some of the Bay Area’s hardest hit counties are seeing their foreclosure numbers drop compared with last year. In San Joaquin County, foreclosure filings have dropped 42 percent since February 2009; in Alameda, foreclosure filings are down 16 percent and in Contra Costa County, filings are down 3 percent.” The article, written by Laura Anthony, continued to say that “At least temporarily, fewer bank-owned properties are coming on the market. In some areas of Contra Costa County, there is intense competition for them among buyers.”

East Bay homes for sale are also showing contradictory signs, with home prices and home sales trending in opposite directions. According to a March 19, 2010 article in the San Francisco Chronicle, “The volume of Bay Area home sales dipped in February compared with a year ago, while the median price continued to rise, according to a real estate report released on Thursday. ‘The increase in the median reflects just how odd things were a year ago,’ said Andrew LePage, an analyst with MDA DataQuick, a San Diego research firm.” Mr. LePage continued to state that “Over half of the resales (then) were foreclosures, and the less expensive inland counties had an unusually high portion of the sales. With the more expensive counties now contributing more sales, it’s easy to post a double-digit increase in the median price. It does not reflect a 20 percent appreciation in the typical home.”

The same basic trend for East Bay real estate for sale was noted in a March 19, 2010 article in Housing Wire, which said that “In the San Francisco Bay Area, home sales improved from January to February, but remained below last year’s level. However, the median price paid continued a five-month-long run of year-over-year increases, according to MDA DataQuick. There were a total of 4,987 new and resale houses and condos sold in the nine-county Bay Area in February.”

Oceanside housing market

The Oceanside housing market, a coastal portion of the larger San Diego County real estate market, showed continued signs of improvement in the most recent tracking periods. According to a June 10, 2010 article in the San Diego Union-Tribune, “San Diego County foreclosure filings were down 29.6 percent from last year and 1.9 percent from last year and 1.9 percent from April, RealtyTrac reported today.” The piece, composed by Roger Showley, continued to report that “The Irvine-based company reported 5,386 default notices, foreclosures and other actions in may. That pushed San Diego County’s ranking among distressed housing markets from 18^th in May 2009 to 26^th last month, out of 203 areas surveyed…For San Diego, the May count was one distress filing for every 211 homes in the county. Nationally, there were 322,920 filings in May, 3.3 percent less than in April and up 0.5 percent from May 2009.”

The average purchase price of an Oceanside real estate rose strongly over the last several tracking periods. According to a May 25, 2010 article from the Voice of San Diego, “There’s no doubt housing prices have come roaring back this year. New numbers released this morning showed San Diego County home prices rose again in March – marking the 11^th straight month they’ve been headed up.” The piece, written by Kelly Bennett, went on to state that “Local prices rose 10.8 percent between March last year and this March – when buyers scrambled into the market to take advantage of an expiring federal tax credit. That was the second largest increase in any of the 20 cities measured in the Standard & Poor’s Case Shiller home price index, a closely watched indicator for the housing market. On a month-to-month basis, March’s prices showed an increase of 1.5 percent from February.”

The shifting Oceanside housing market has made it more affordable to rent in the region, according to a June 5, 2010 article in the San Diego Union Tribune. The piece, composed by Roger Showley, said that “It pays to rent – not buy – for most people in San Diego County, says Trulia.com. In its first survey comparing buying vs. renting, the San Francisco-based website ranks San Diego the eighth-highest market that favors renting instead of owning out of 50 cities surveyed.”