During the quarter ended September 30, 2011, 320 homes were sold in our local market*, down 4% from the 334 homes sold in the same quarter last year and the median price fell to $739,000, down 1% from $749,000 in the same quarter last year. Properties took slightly longer to sell, 33 days on average up from 31 in the same quarter last year, but still lower than the 37 days in the same period in 2009. Although prices in most areas were either flat or marginally lower per square foot, several areas that had previously experienced sluggish sales showed renewed signs of interest including Montclair and Redwood Heights. Available inventory continued to be absorbed and fell from 410 homes at the end of last quarter (4 months of inventory) to 293 homes at the date of this letter (3 months of inventory). The current market is one where a home either sells in competition at a higher than asking price within its first two weeks of availability or faces a reduction in realized price.
*detached homes over $450,000 in Albany, El Cerrito, Kensington, Piedmont and the hill areas of Berkeley and Oakland