Dear ActiveRain Member,

In response to requests from many of you for market data, I have prepared a comparison of residential real estate sales in Oakland for Q4 2006, Q4 2007 and Q4 2008.

 The numbers tell a very interesting story. 

 From Q4 2006 to Q4 2008 for detached homes, dollar volume was down 35.9%; average sales price was down 47.0% and median sales price was down 63.6%.

 What does this really mean?  Single family home values have not all depreciated 47%-64% (though property values in all Oakland zip codes are lower than they were in 2006).  The majority of home sales in Q4 2008 were bank owned ("REO") and short sales in neighborhoods with lower average property values attractive to investors, builders and first time home buyers.  In addition, fewer high-end properties sold as jumbo loans were virtually non existent; homebuyers didn't want to sell their existing homes in a declining market to up or down size; down payments were lost in the declining equities market; and the uncertainty that comes with and increased unemployment rate.

If we compare Q4 2006 with Q4 2008 for condos / townhouses homes, dollar volume is down 41.5%; average sales price is down 24.2% and median sales price is down 27.8%.

The two major factors for the decrease in sales and median prices were an increase in REO and short sales and a decrease in new construction sales that typically sell for more $/square foot.

Property values will not increase until we can greatly reduce the supply of properties in Oakland.  The best two ways to improve this: 1.) Don't sell your home unless you have to; and 2.) Buy something! 

Some help is on the way, but don't expect it to have a significant impact:

1.) $8,000 credit from the Federal Government for first-time homebuyers: http://federalhousingtaxcredit.com/

2.) $10,000 credit from the State of California for new construction: http://www.reuters.com/article/marketsNews/idUSN2035237520090220

We have not seen prices so attractive with interest rates so low for a very long time.  Now is the time to invest (more) in Oakland.

Please feel free to call if you'd like to find out what's happening in your neighborhood, or if you would like to learn more about attractive deals on the market.

Kind regards,

Andy Read

Caldecott Properties

5251 Broadway

Oakland, CA 94618

tel:   510.594.2400 x 222

fax:  510.594.2424

www.Caldecott.com

Yes.  Although there are significantly fewer than in other parts of Contra Costa or Alameda Counties, there are always a few REO listings available within these cities.

Here is a list as of 2/13/2009:

If you would like to learn more about any of these, or if you would like to receive an automated email with all REO properties within particular zip codes or cities in Alameda or Contra Costa Counties (including Piedmont, Oakland, Berkeley, Emeryville, Kensington, Lafayette, Orinda, Moraga, Walnut Creek and Alameda), please contact me today.

Regards,

Andy Read

510.594.2400 x 222

aread@Caldecott.com

Oakland's historic Cathedral Building has been converted into full-floor luxury condos.  They were recently featured in the SF Chronicle:  http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/12/14/RETH14L1T9.DTL&hw=cathedral+building&sn=004&sc=827

This is a historic 1914 gothic revival skyscraper and was honored into the National Registry of Historic Places in 1979.  The building is similar to the Woolwoorth Building in Manhattan.

Prices start at $699,000 - details at www.Cathedral-Building.com.

The property is open Sundays, 1-4pm and by appointment.

Our office has the privilige of marketing many newly constructed and converted residential buildings in the East Bay.  Properties range from entry level homes in West Oakland's Dogtown Art District, to multi-million dollar penthouse lofts.  The majority of these projects are in Oakland (Uptown, Downtown, Jack London Square, Rockridge, West Oakland and Temescal) and Emeryville.  You can view details of our current projects, including the Cathedral Building, Lottie Lane, Pop Junction Lofts, Claremont Terrace Homes, here:  http://www.caldecott.com/?page=new_develop

Please call with any questions - we'd be happy to assist you with your search.