No Improvement In May Home Sales

Yesterday existing home sales reported a rise of 2.4% in May of previously owned homes in the United States. This rose at a slower-than-expected pace in the month and much of it is being attributed to a sluggish recovery from the severe economic recession. Local the Alameda market saw a decline as home sales dipped below 30-units, making it five of the last six months where sales have not exceeded 29 units.

Alameda recorded, for May, a Year-Over-Year sales decline of 30-percent and a month-over-month drop of 20-percent. The swings are big for Alameda, because the numbers are low. The take away is sales just have not started to take off and it appears people are sitting to see if they will have jobs or the market will fall farther.

The news for our region shows that prices in the West Down over 30%

The National Association of Realtors said sales rose 2.4% to an annual rate of 4.77 million units from a downwardly revised 4.66 million pace in April. That compared to market forecasts for a 4.81 million-unit pace. However, sales increased for a second straight month in May. The Realtors report showed sales remained down 3.6% compared to May last year.

Data on new and existing home sales have backed suggestions that the three-year housing slump is nearing a bottom. With a surge in mortgage rates and unemployment highs have tempered any optimism.

The Realtors report showed sales of single-family homes rose 1.9% last month to an annual rate of 4.25 million, while multifamily units — the hardest-hit sector — surged 6.1% to a 520,000-unit annual pace. The supply of unsold homes fell 3.5% to 3.80 million. At the current sales pace, it would take 9.6 months to clear that supply, down from 10.1 months in April.

On the new home front, the government reported sales fell slightly last month, in another sign that the housing market’s recovery is likely to be gradual and prolonged. The Commerce Department said Wednesday that sales dropped 0.6 percent in May to a seasonally adjusted annual rate of 342,000, from a downwardly revised April rate of 344,000. Sales were down nearly 33 percent from May last year.

Overall the news is this housing downturn still needs a lot more to happen for it to turn.

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May Sales for Alameda Down

The May sales for Alameda were just 26 for the month (chart below), a year-over-year decline of 37% and a month-over-month decline of 26%. The numbers are showing that currently there is not much interest in the Island housing market. Five of the last six months sales were below 30-units.

Alameda has not follow the national trends in regards to foreclosures, declining values and sales volume. Yesterday, the National Association of Realtors announced pending home sales for April that had a dramatic increase. Alameda had a nice increase for April but followed with a big decline. The number of home buyers who agreed entered into a contract to buy resale home rose to its highest level in nearly eight years in April and the median sales price dropped by about 15 percent.

The pending contract number far exceeding analysts' forecasts with NAR's seasonally adjusted index rose 6.7 percent, to 90.3, . It was the biggest monthly increase since October 2001, when pending sales rose 9.2 percent. The increase most likely reflects big declines in pricing and the first wave of home buyers that took advantage of the $8,000 tax credit that was included in the economic stimulus bill.

With the tax credit deadline looming NAR expects sales to ramp up by the November 30 date to claim the credit.

''we expect greater activity in the months ahead,'' Lawrence Yun, the chief
economist of the National Association of Realtors, said in a statement.

The sales of low-end foreclosures and short sale homes drove the national median sales price down 15 percent for April from the prior year, to $170,200. That was the second-largest yearly price drop on record, according to the association. Alameda's median home price hit bottom in January at $457,000 and has fluctuated in the $500K range in the following months.



Link to larger chart

. Sale Date Address Zip Type List Price Sale Price % Sq Ft . 5/1/2009 351 MAGNOLIA DR 94502 SFR $699000 $670000 96% $312 . 5/4/2009 1535 LINCOLN LN 94501 SFR $589000 $570000 97% $386 . 5/5/2009 30 AUGHINBAUGH WAY 94502 CONDO $630000 $586000 93% $387 . 5/7/2009 1420 FERNSIDE BLVD 94501 SFR $659000 $630000 96% $402 . 5/12/2009 1311 WEBSTER ST. #E118 94501 CONDO $235000 $235000 100% $279 . 5/13/2009 47 BANNISTER WAY 94502 SFR $639000 $605000 95% $341 . 5/14/2009 104 INVERNESS WAY 94502 SFR $729000 $688000 94% $452 . 5/14/2009 3001 FLORA VISTA 94502 CONDO $489000 $489000 100% $300 . 5/14/2009 1030 BROADWAY 94501 SFR $585000 $555000 95% $550 . 5/14/2009 15 OAK PARK 94502 CONDO $549000 $500000 91% $302 . 5/15/2009 1917 KITTY HAWK PL 94501 SFR $599000 $602000 101% $411 . 5/15/2009 39 LAWRENCE ROAD 94502 SFR $929000 $860000 93% $358 . 5/15/2009 549 SANTA CLARA 94501 MFR $595000 $520000 87% N/A . 5/15/2009 951 POST ST 94501 SFR $395000 $395000 100% $298 . 5/15/2009 1810 CENTRAL AVE #310 94501 CONDO $418000 $415000 99% $355 . 5/15/2009 992 POST ST 94501 SFR $535000 $546000 102% $541 . 5/15/2009 2709 CENTRAL AVE #A 94501 CONDO $335000 $336000 100% $352 . 5/18/2009 1128 ADMIRALTY LN 94502 CONDO $469000 $469000 100% $286 . 5/19/2009 2207 SANTA CLARA AVE. 94501 MFR $728000 $686500 94% N/A . 5/19/2009 2205 SANTA CLARA AVE. 94501 SFR $728000 $686500 94% $264 . 5/21/2009 1305 WEBSTER ST #C200 94501 CONDO $258000 $258000 100% $306 . 5/22/2009 1901 EAGLE AVENUE 94501 SFR $499000 $540000 108% $367 . 5/22/2009 1132 BROADWAY 94501 SFR $525000 $582000 111% $342 . 5/27/2009 2101 SHORELINE DR #344 94501 CONDO $424000 $424000 100% $289 . 5/27/2009 2117 ENCINAL 94501 SFR $579900 $605000 104% N/A . 5/29/2009 258 JACK LONDON AVE 94501 SFR $750000 $680000 91% $268 . Average $560381 $543577 98% $354 .

Half Way In May

With May now more than half over and the Memorial Day Weekend approaching to kickoff the Summer vacation season, it is a good time to check-in and see how sales totaling up for the month.

Traditionally, the end of each month is stronger for closes but the more sales you rack up early in the month the stronger the month tends to be for sales.

Given that trend May is not shaping up to be very strong. So far sales are trickling in, just eight in the first 15 days. Sales were split between four condominiums and four single family homes as well as four sales in the 94501 and four in the 94502. The low sale was a two bedroom condo for $235,000. The high sale was a $670,000 four bedroom home on Bay Farm.

May 2008 posted 41 sales, given the trend it will be difficult to match last year's sales totals.

The sales generated $4.2 Million in transactions with an average sale price of $525,000. On a square-foot basis the condos averaged $330 per square foot and the single family homes average $360.

. 5/1/2009 351 MAGNOLIA DR 94502 SFR 4 3 2149 $699000 $670000 . 5/4/2009 1535 LINCOLN LN 94501 SFR 3 2 1476 $589000 $570000 . 5/5/2009 30 AUGHINBAUGH WAY 94502 CONDO 3 2 1516 $630000 $586000 . 5/7/2009 1420 FERNSIDE BLVD 94501 SFR 3 2 1566 $659000 $630000 . 5/12/2009 1311 WEBSTER ST. #E118 94501 CONDO 2 1 843 $235000 $235000 . 5/13/2009 47 BANNISTER WAY 94502 SFR 3 2 1772 $639000 $605000 . 5/14/2009 3001 FLORA VISTA 94502 CONDO 3 2 1628 $489000 $489000 . 5/15/2009 1810 CENTRAL AVE #310 94501 CONDO 2 2 1170 $418000 $415000