San Francisco Real Estate - Residential

Signs of stabilization

Although this article applies to new building, the economics work the same way for resale. The media is beginning to understand that this is a cycle and not a significant one.

Here is what the December 27th report from CNN Money News entitled New Home Sales: Back from the Dead? says, "Homebuilding, one of the most battered sectors of the U.S. economy in recent months, showed surprising strength in November, according to a government report Wednesday.

"New homes sold at an annual pace of 1.05 million, up from the revised annual rate of 1.01 million in October. Economists surveyed by Briefing.com had forecast that home sales would rebound to a 1.02 million pace.

"The median average home price came in at $251,700 in November, up from the $248,500 level in October. The median price, that is, the point at which half the homes sell for more and half sell for less, had shown declines earlier in the fall because of a glut of homes available for sale on the market." Read more...

However, there is an interesting link to Hot Spots and Cold Spots which predicts that California (including the San Francisco Bay Area) will be COLD in 2007. We'd love to show them how wrong they are!

- Avram Goldman and Mick Orton

posted by SFResidence.com @ 8:26 AM