Archive for November, 2008

What if property prices had not skyrocketed?

Monday, November 10th, 2008

I find it interesting to consider where the current prices would be if the Northern California real estate market appreciation rates had been more “normal” since 1999…

Home prices in the region skyrocketed from 1999 to the fall of 2005.  Since 2005, prices have fallen to where they are today.  Suppose home prices had risen a more normal 5% per year since 1999 until today.  According to my calculations, prices are approximately 5% to 10% higher today that what they would have been had a steep rise and fall had never occurred.  The fact that these prices are so close is one other indicator that we might be nearing a more normal market.

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October ’08 vs. ’07

Friday, November 7th, 2008

The average price per square foot of home sold in Davis in October was $304.39 (see oct-cma.pdf).  Interestingly, if you look at the homes that are pending sale, the average askingprice per square foot is under $300.  Given this, the average sales price per quare foot will obviously also be below $300.  So November and/or December will likely be the the first month(s) with an average sales price per square foot below $300 in several years.

When one compares Octobers numbers to October of last year, 2007 (see oct-07-cma.pdf), one can see that the average price per square foot of homes sold Davis in October of this year vs. October of last year dropped about 7%.  The average number of days these homes remained on the market (DOM) before they sold increased by 1 day.

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