NAR (National Association of Realtors) just came out with its monthly home sales report which showed that sales running at a seasonally adjusted annual pace of 5.37 million last month, down 5.1% from May but up 9.8% from one year ago. We figure that last spring buyers rushed into transactions to take advantage of the tax credits worth as much as $8,000. To qualify, buyers had to sign purchase contracts by April 30.
We don’t have a crystal ball but we can only the surmise that inventories will swell in the coming months as short sales continue to rise and those homes that don’t go through the short sale process or complete the loan mod process will end up as foreclosures.
For the prices, the San Francisco Bay Area mostly showed a slight increase in price like San Francisco, (from the year to year – May 2010 to May 2009) saw the median price ticked up slightly from $655,000 from $642,000, Mountain View rose 1% to $649,000.00 from $645,000.00, and San Jose rose 21% to $455,000.00 from $377,250.00. Lest we forget that last year everyone had foreclosures on the brain and in most markets.
Considering where the market sat a year ago these numbers don’t represent a surprise. Keep an eye on (we are) the upscale zip codes like Palo Alto, which dropped 8% to $1,293,500.00 from $1,400,000.00, and San Anselmo, which tumbled 9% to $667,500.00 from $735,750.00.