What Type of Market? Buyer or Seller

It is November with just 59 days left in the year and in the Alameda Real Estate world the past 10 months it has been a difficult time for those selling their home, those who saw loans reset and could not afford them any longer and for buyers looking for a variety in inventory.

A year ago, there were nearly 200 units for sale, today we are down to 122. This represents about three months of inventory. In a balanced market buyers could expect to six about six months of inventory to choose from, as they shop for a home.

Alameda's market is a little strange right now, all indications are that it is moving from a buyer's market to a seller's; with low inventory, homes selling for over asking and desirable location. The developing trend of homes selling for over asking price is new. Realistically, I think the sentiment is that buyer's still hold the advantage.

I do not see anything changing real soon. The credit market is still very difficult especially for those needing a Jumbo loan, which is most of the single family residences in Alameda. It also appears that step-up buyers, those looking to buy a more expensive property than they own, are not stepping up.

The Senate is currently looking at extending the home buyer’s credit and in the most recent bill the legislature is looking to address this issue by allowing other than new home buyers and increasing the income limit.

In the interim, it appears that Alameda homeowners are willing to sit on the sidelines. The only influencing factor on our local housing market will be inventory. Any large increase or decrease is what will impact pricing.

The chart represents inventory since July. The downward trend is significant, but it has flattened over the past six weeks.


Link to Larger Chart

Alameda Inventory -- November 2

. . 11/2/2009 . Total 122 . 94501 96 . 94502 26 . SFR 72 . Condo 26 . Multi-Family 22 . Short Sale 16 . Foreclosure 11 . Price Reductions 40 . High List $1,899,000 . Low List $175,000 . .