“The month-to-month gain was atypical: sales normally decline around 11 percent from August to September. In DataQuick’s statistics, which go back to 1988, September sales have increased three other times, in 1988, 1992 and 2008. September sales have averaged 8,835, ranging from 5,014 in 2007 to 13,343 in 2003. Last month’s year-over-year sales gain was the 13th in a row.”

As expected, sales volume is up, but average values are lower.

“A total of 7,879 new and resale houses and condos sold in the nine- county Bay Area last month. That was up 4.8 percent from 7,518 in August and up 8.4 percent from 7,271 in September 2008, according to MDA DataQuick of San Diego.

The median price paid for a Bay Area home was $365,000 last month. That was up 1.4 percent from $360,000 in August, and down 8.8 percent from $400,000 for September a year ago. The year-over-year decline was the smallest since January 2008, when the $550,000 median was off 8.5 percent. The Bay Area median peaked at $665,000 in June 2007. About half the decline in median since then is due to a drop in home values, the other half can be attributed to the shift in market mix.”

In terms of Bay Area real estate, the market may be closer to leveling out, but is still not THAT close:

“This market may be closer to normal than it was a a half year ago, but it’s still out of kilter, fueled in large part by incentives and the processing of distressed properties. The sales mix is still lopsided, tilting toward the low end, and lending institutions are only making really safe mortgage loans. For those who can buy, there are some very attractive opportunities. But it still looks like a lot of normal supply-and-demand activity has been put on hold until the economy comes back,” said John Walsh, MDA DataQuick president.

The uncertainty and doubt of where the real estate market will even out, gives creative real estate investors and players more options to negotiate long and short teerm deals for the benefits of both parties. To read more of this great article and others, please visit Dataquick’s Real Estate News Page.

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