Bay Area Home Prices Continue to Climb

7,915 homes sold in June.

Patch file photo.
Patch file photo.
Bay Area home sales were slightly up in June but remained below long-term levels, according to data services provider DataQuick.
Prices on homes also continued to increase but at one-third the rate of 2013's pace. DataQuick, a San Diego-based company, reported potential homebuyers are still dealing with a limited supply of inventory, prices at or near new highs and a tough lending environment.
There were 7,915 new and resale houses and condos sold in the Bay Area in June, up 0.2 percent from the 7,898 sold in May, according to DataQuick.
June sales were also up 0.2 percent from the 7,897 sold in June 2013. In June, the median price for a home in the Bay Area reached $618,000, the highest price since the November 2007 median price reached $629,000.
The June median price increased by 0.2 percent over the May median price of $617,000 and increased by 11.4 percent over the June 2013 median price of $555,000. The Bay Area's median price for a home hit a low of $290,000 in March 2009.
DataQuick reported foreclosure resales accounted for 3.1 percent of all resales. That number was unchanged from May and down from 5.7 percent in June 2013. Short sales made up 4.4 percent of all resales in June, down from 4.6 percent in May and 9.5 percent in June 2013. Absentee buyers, who consist mostly of investors, purchased 20.8 percent of all homes sold in June. In May, that number was 19.3 percent. In June 2013, the number was 21.8 percent.

—By Bay City News
Wire July 18, 2014 at 02:11 AM
Are you ready for that crash again like 2008? This will be a lot worse, you will owe the FEDS . Inflated prices.
Sammy July 18, 2014 at 08:43 PM
@Wire I think that it's very possible for the present enthusiastic sentiment concerning housing prices to change and for housing prices to go down some as a result. But I don't think that this is a bubble like the one that burst around 2008-2008. Back then, there was a lot of funny money bidding up housing prices, with ridiculous loans being given out to everyone. This time, people are using real money, and loans are being closely scrutinized by the banks.
libertus_rebelium July 19, 2014 at 02:37 PM
Sammy, it is absolutely a bubble. Incomes and job growth do not support the home prices which means that unless everyone gets a raise in the next six months (and a 20% raise at that) then this market is not sustainable. Chinese investors paying in cash is what drove the market to the absurd levels it is now in. They made their money and now they are pulling out, leaving the working joes with a lot of debt that they may not be able to reconcile. Prices have to go down unless the lab wants to hire 10,000 people and pay them enough to afford a 2 bedroom that costs half a million dollars. Good for all those vultures, I guess, who got to dump their property at obscene prices to their neighbors.
Mike July 19, 2014 at 07:36 PM
Most countries around the world require citizenship or Resident Alien status in order to purchase residential real estate. Why does our country allow foreign investors to come here to buy houses and drive up prices for everyone?
will bateson July 23, 2014 at 09:10 AM
One BIG difference between 2014 and 2007 (which was a bubble) is that banks are very tight with credit right now, so folks buying houses can actually afford what they are buying and not relying on prices to keep going up before their teaser loan rates jump up.


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