Solano County Leads Region In Affordability But Not In Homes Sales
We’ve seen a lot of positive numbers about the real estate values here in Bay Area rising which to many homeowners looms as a great positive. However, on the other side of fence, the affordability issue continues to be a growing issue for most Bay Area counties, except for Solano.
Due to a continue surplus in distressed properties (mostly short sales but still some foreclosure properties) the prices in Solano country remain affordable. Although investors often snap up many of the lower priced single family homes, first time homebuyers and owner occupiers have been able to purchase single family homes in cities such as Vallejo for less than $100,000.
Last month, distressed property sales comprised about 33 percent of the resale market. That number marked about a 38 percent drop in September and down from about 63 percent in October 2011.
Foreclosure resales — homes that had been foreclosed on in the prior 12 months — accounted for 12.0 percent of resales in October, down from a revised 14.1 percent in September, and down from 25.3 percent a year ago. Last month marked lowest point since foreclosure resales since the 10.1 percent level in November 2007. Just for comparison, foreclosure resales peaked at 52.0 percent in February 2009. The monthly average for foreclosure resales over the past 17 years is about 10 percent.
Short sales made up an estimated 21.4 percent of Bay Area resales last month. That level shot down from about 23.5 percent in September and down from 24.9 percent a year earlier.
For total sales, the Solano County numbers remain low as just 598 homes sold in October, an increase of just 7.9 percent from a year ago. But compared to the rest of the nine Bay Area counties, Solano continued to offer the most affordability. The median price of homes sold in Solano stood at $216,000, up 14.9 percent from a year ago but affordable compared to the rest of the region.
Median Price Of Bay Area Homes Hits $416,000
In comparison, the median price paid for a home in the Bay Area as a whole hit $416,000. That mark actually ticked down 3 percent from $429,000 in September but up 18.9 percent from $350,000 in October 2011. The year-over-year percentage increase marked the highest since May 2010, when the $410,000 median rose 20.1 percent.
Even for those buyers interested in taking advantage of the still low prices, the outlook for 2013 looks positive. Most people expect the continuing trend of short sales to continue in the county which will keep values relatively low.