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.
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Detached Homes |
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Condos / Townhouses |
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# Sales |
618 |
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# Sales |
139 |
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Dollar Volume |
$390,481,793 |
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Dollar Volume |
$63,581,313 |
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Average Sales Price |
$631,848 |
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Average Sales Price |
$457,420 |
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Median Sales Price |
$550,000 |
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Median Sales Price |
$425,000 |
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OAKLAND RESIDENTIAL REAL ESTATE SALES Q4 2007 |
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Detached Homes |
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Condos / Townhouses |
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# Sales |
360 |
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# Sales |
110 |
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Dollar Volume |
$226,219,210 |
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Dollar Volume |
$47,740,090 |
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Average Sales Price |
$628,387 |
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Average Sales Price |
$434,001 |
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Median Sales Price |
$535,250 |
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Median Sales Price |
$385,000 |
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OAKLAND RESIDENTIAL REAL ESTATE SALES Q4 2008 |
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|
Detached Homes |
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Condos / Townhouses |
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# Sales |
747 |
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# Sales |
113 |
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Dollar Volume |
$250,213,528 |
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Dollar Volume |
$39,185,495 |
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Average Sales Price |
$334,958 |
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Average Sales Price |
$346,774 |
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Median Sales Price |
$199,900 |
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Median Sales Price |
$307,000 |
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Source: MAXEBRDI MLS data 2006-2008; data does not include "For Sale by Owner" and new |
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condominium / townhouse sales not entered into MLS. |
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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
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