Bay Area Home Sales Slightly Up in June

July 17, 2014 15:00 pm · 18 comments

Bay Area home sales were slightly up in June but remained below long-term levels, according to data services provider DataQuick.

Prices on homes also continued to increase but at one-third the rate of 2013’s pace.

DataQuick reported potential homebuyers are still dealing with a limited supply of inventory, prices at or near new highs and a tough lending environment.

There were 7,915 new and resale houses and condos sold in the Bay Area in June, up 0.2 percent from the 7,898 sold in May, according to DataQuick.

June sales were also up 0.2 percent from the 7,897 sold in June 2013.

In June, the median price for a home in the Bay Area reached $618,000, the highest price since the November 2007 median price reached $629,000.

The June median price increased by 0.2 percent over the May median price of $617,000 and increased by 11.4 percent over the June 2013 median price of $555,000.

The Bay Area’s median price for a home hit a low of $290,000 in March 2009.

DataQuick reported foreclosure resales accounted for 3.1 percent of all resales. That number was unchanged from May and down from 5.7 percent in June 2013.

Short sales made up 4.4 percent of all resales in June, down from 4.6 percent in May and 9.5 percent in June 2013.

Absentee buyers, who consist mostly of investors, purchased 20.8 percent of all homes sold in June. In May, that number was 19.3 percent. In June 2013, the number was 21.8 percent.

Aspirin July 17, 2014 at 3:31 PM

Ours is a “boom or bust” housing market. Happens every time. Bank on it.

anon July 17, 2014 at 3:33 PM

Rents going up.

Aspirin July 17, 2014 at 3:35 PM

I don’t like investment, or absentee, buyers. They degrade the neighborhood. Their properties are usually rentals and for some strange reason many renters feel no obligation to maintain the appearance of the homes they are living in.

et-al July 17, 2014 at 3:58 PM

Closed on my new home in June too. Not in the bay area though, I’ve escaped. Got three of ’em now.
Maybe I’ll raise the rent too.

Shelly July 17, 2014 at 4:40 PM

Aspirin #3, That’s a broad statement. As a long time renter I’m always careful to leave a property cleaner and better kept than I got it, inside and out. I must put up a large deposit in order that a landlord hands over the keys to their property, and I’ve never had any problem getting my money back, nor do I ever intend too. Every rental agreement I’ve ever had spells out exactly who is responsible for what, and if the property isn’t properly maintained it’s more likely the fault of the owner, who has the ultimate responsibility to do so. It is their investment to protect after all and protect it they will, unless they’re a slumlord.

Marianne July 17, 2014 at 4:45 PM

That’s not always the case; I think a rental property is a good investment.

Julio July 17, 2014 at 5:50 PM

Rental property is a good investment if you have enough of them. They can also bleed you dry. It is the investment properties that are running down our neighborhoods. Absentee landlords normally care nothing about your house values or mine. They just want to rake in the money. Why else would people from China, Russia etc want to own property here? The Chinese already own 90 per cent of our national debt. They could call in our debt and own us completely.

Tom July 17, 2014 at 6:13 PM

We have rental properties (in the Bay Area), and if the renters don’t keep up the property (rarely), I go over and do it myself.

I agree, it is the owner who’s responsible, but I do care about “don’t lower my property value.”

I’m also very careful who I rent to. You have to be. If not, you’re an irresponsible landlord.

Some renters are more responsible than the homeowner next door. It depends on whether or not you care.

KJ July 17, 2014 at 7:05 PM

I’m less bothered by individuals buying property as an investment than I am hedge funds doing it. I can’t see hedge funds being good landlords, and since their idea of investing is to buy low/sell high (not long-term rental income), they compete with other hedge funds to drive up the prices (irrational exuberant bubble mentality).

Bubbles Everywhere July 17, 2014 at 7:51 PM

Credit bubble is back up to early 2007 level, stock market is at all time high and Federal reserve is holding interest rate artificially low.
If there is a downturn from say something going on in a former Soviet state or say a war in the Mid East and market gets spooked and starts to drop.
What can FED do? Can’t lower interest rates like last time.

An you’ve got a president that believes 200,000 part time jobs in a month is recovery. Lets just be kind and say he doesn’t have a degree in economics. Not retiring for at least three years.

Concord Dad July 17, 2014 at 9:52 PM

No bubble here, folks! It’s totally sustainable! Stampedes of cash buyers are a part of a completely normal real estate market! Prices can only keep going up, right?

The Realist July 18, 2014 at 12:01 AM

More knuckle-dragging mouth-breather apartment dwellers are becoming legitimate home-owners? That can only be a good thing, right?

Smokey July 18, 2014 at 3:32 AM

We have a slumlord owner in our neighborhood. We make his life hell until he addresses the problem. Our pain is his pain. The landlord is responsible for the problems caused by his tenants. He is also financially responsible if his tenants drag your property value down. But only if you can prove he was aware of the problem. Document it early and often and provide it in writing to the landlord. I learned it will really get his attention if it comes from an attorney. The next tennant in the house was a huge upgrade from the prior tennant.

TJ Jones July 18, 2014 at 7:06 AM

I’ve got three rentals owned outright and net $70k per year…Yes it’s a good investment if you can do most of the repairs and manage the properties. Otherwise, paying a management company will take a big chunk out of the income potential.

Vandy July 18, 2014 at 7:23 AM

@Julio. While China is the largest foreign holder of US national debt, its a common misconception that they hold most of the total debt. The largest holder of our National debt is actually the the Federal Reserve and intragovernmental holdings, like the Social Security trust fund, ie American retirement money owns our debt. Also, among the portion of US national debt owned by Foreign investors, mainland China owns less than 30%. And that number is not increasing quickly. You should look this up and read more.

Connie Dobbs July 18, 2014 at 7:38 AM

#3 So it’s my responsibility as a renter to paint the house or repair the fence?

Marianne July 18, 2014 at 8:54 AM

Management companies are the best way to go if you invest in many properties or complexes.

Captain Bebops July 18, 2014 at 9:29 AM

The county seems to think there’s a bubble. Look for higher taxes. But houses aren’t selling in my area.

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