Andrew Dowling

My opinion is that foreclosures in the region will abate in late 2009.  That, combined with a possible reduction of overall inventory will cause 2009 to be very flat (0% to 1.7% appreciation in ‘09?).  One would fully expect former sub-prime homeowners to be renting properties again and this will increase demand and rental rates of “homes for rent”.  In 2010, we’ll likely see “normal” long term average annual price increases (perhaps 4% to 6% appreciation). 

The attached report shows all of the homes in all of Davis that closed escrow in January ‘08 and February ‘08.

cma-jan-and-feb.PDF

 The average price per square foot ($319.11) for January has not dropped much from previous months/quarters.  A testament to the overall strength of the Davis real estate market compared to surrounding areas.  With February include, the average price per square foot dropped to $309.29.

Andrew Dowling, CRS, Broker associate (530) 902-3999