2008 Coastal Mendocino Real Estate Market Outlook
While the real estate market information available in the national media helps to explain larger regional trends, it is important to remember all real estate markets are local markets. Because local markets often vary dramtically from the larger regional markets, I've created local market information on the webpages to the left.
Home sales decrease and prices fall across California - Posted March 20, 2008, excerpted from a February 25, 2008 C.A.R. news release
Home sales decreased 29.8 percent in January in California compared with the same period a year ago, while the median price of an existing home fell 21.9 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
“This most recent decrease in the median price is yet another result of the liquidity crunch, which has choked off sales in recent months for nearly half of California’s housing market," said C.A.R. President William E. Brown. "Sales do appear to be edging up, but recent declines in the median price have been due to a lack of sales in the over $500,000 range, where funds are extremely scarce and jumbo loan rates are at near-record margins compared to conforming loan rates.”
Closed escrow sales of existing, single-family detached homes in California totaled 313,580 in January at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity decreased 29.8 percent from the 446,820 sales pace recorded in January 2007.
The statewide sales figure represents what the total number of homes sold during 2008 would be if sales maintained the January pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during January 2008 was $430,370, a 21.9 percent decrease from the $551,220 median for January 2007, C.A.R. reported. The January 2008 median price fell 9.7 percent compared with December’s revised $476,380 median price.
“The slight increase in sales predates the president's signing of an economic stimulus package including a temporary increase in the conforming loan limit, but that much needed reform could give the market some momentum,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Let's hope congress and the president see fit to make the higher loan limit permanent.”
Prices should decline slightly, activity should increase Original post on February 12, 2008, Revised March 20, 2008 – Ted Tanner
Across the state in 2007, the Median Price of an Existing Detached Home in California rose slightly - much like our local market. Due to the dramatic slowdown in statewide real estate sales however since the market peaked in 2005, this trend is unsustainable and has come to a close. In their 2008 Real Estate Market Forecast, released in June 2007, the California Association of REALTORS® (CAR) calls for a 4% drop in the Median Price of an Existing Detached Home in California in 2008. It now looks as though it will be more severe (see above.)