In a year-over-year comparison sales are down 38 percent. In what is suppose to be the traditional sale season for real estate, the City of Alameda continues to be sluggish as other part of California have begun to heat up.
On reason is the median and average price of Alameda homes. For July the median was $582,000 and the average sale price was $590,652. In a Wall Street Journal report today, homes at the upper end continue to see sales remain in a deep slump and price declines are expected to accelerate in these areas.
The article points out those homes over $750,000 continue to grow in terms of inventory and days on market. Since Alameda has a significant amount of inventory over $500,000 it is not a surprise that sales have been sluggish at best. In addition, the Jumbo loan market has not made it any for buyers looking into Alameda property.
The most interesting item that came out of these months sales was a trend up on the number of properties that sold for over list price. More than half of the properties got offer for at least the list price. Seventeen properties sold at or above list price. I think this is very noteworthy, because if this continues we can see the return of multiple offers.
Here is breakdown of the sales. The 94501 account 26 of the 35 sales (74%), the 94502 had nine sales. Twenty six of the sales were single family residences, 7 condos and 2 multi family.
The highest priced sale was at Bayport, where a five bedroom, four bathrooms home sold for $923,000. The lowest priced property was a one bedroom, one bathroom condo that sold for $135,000.
Alameda Inventory as of August 2, 2009
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Any investment can be overpriced no matter how great its fundamental value or how secure its prospects. In the absence of a more thorough analysis, it's reasonable to suspect that investments in a market that has been rising for a long time are overpriced. In itself that guideline isn't a signal to sell, it is a signal to make a closer examination.
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