Home Prices in San Francisco Experience a Drastic 41% Fall This Season

As per the MDA DataQuick there has been a major curb in the prices of the homes in San Francisco Bay Area. Compared to the last year’s statistics this April the data featured a fall of approx 41% and in fact last year the foreclosures were responsible for more than half of the selling of homes and properties.

In April 2008 the number of condominiums being sold including houses totalled to 7,139 in the nine-county zone and this featured a hike of almost 13%. According to a research company in San Diego, compared to last years average price of $518,000 this years average price showed a downfall to $304,000 and this can be calculated to be approx 54% less than the level attained by the degree of price rise two years back.

The president of MDA, John Walsh observed that, “Job losses and historically high foreclosure levels continue to pose serious threats to housing stability, in much of the Bay Area, there’s the added problem of ‘jumbo’ loan financing still being relatively expensive and, for many, hard to get.”

Freddie Mac who is also a buyer of mortgaged properties commented that in order to bring down the rates, the Federal Reserve tends to buy mortgaged securities ranging to almost $1.25 trillion. Lesser rates of mortgages and the accessibility to loans for homes are mainly supported through foreclosure properties at a discount and the Federal Housing Administration and these factors are controlling the aspect of sales throughout the US. There was a 4.82% fall in the rates of loans given for 30 years.

According to MDA DataQuick, the number of foreclosures in the Bay Area approximately reached to 47% and this turned out to be the most minuscule level since last November. This scenario cropped up because mostly the buyers purchasing for the first time in the counties featuring an inferior pricing or finance for buying, thanks to the FHA mortgages and this brought up the sales records to the heights.

In case the amount of any mortgage figures to more than $417,000 then it’s focussed on as jumbo loan. In this case approx 22% sales of homes were financed by these jumbo loans as these sales were cut down by 60% or more prior to the financial crisis hitting the economy and market in 2007 August. According to MDA DataQuick, that’s known as the ‘kept sales’ in the areas of expensive coasts where sales reached a recorded inferior state.

In the regions of Solano, Contra Costa, Sonoma and Alameda, Santa Clara sales percentage was hiked to approx 67%, 34%, 22%, and 17.5%, 11.5%. On the other hand according to MDA DataQuick, in the regions of Napa, Marin and San Mateo and San Francisco the level of sales fell to 1%, 19%, and 22.5% and 34% respectively.

The nine counties experienced major plummets and Solano experienced maximum fall of 44% with an average price of $180,000. In Contra Costa the prices came down to 43% making it $225,000 and Alameda faced a 39% fall making the prices approx to $289,197. Napa had a 37% fall leading to $315,000. Santa Clara featured 34% or $405,000, and Sonoma featured 30% or $290,000. The regions of Marin, San Mateo and San Francisco featured 27%, 23%, and 16% fall in the prices. Since March the average price of Bay Area homes came down to 4.8%. In October the average prices rose to just 1% and the prices rose to $665,000 in the months of June and July.

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