Despite the continuing economic turmoil this year, you'd think that sales in The Bay Area would have fallen off precipitously. Surprisingly, the number of homes and condos sold has only declined year to date by 11% in the nine Bay Area counties.
These numbers exemplify the strength of sales in the under-$500,000 price ranges. I think there are three reasons for the concentration of sales in this range. First, the number of foreclosures and short sales have increased over last year, as banks and other financial institutions have been dumping these properties from their books. Secondly, mortgage monies are more readily available in this price category, as they meet the conforming limits. Finally, as home prices have declined, affordability for first-time home buyers has increased.
Just some encouraging words for those looking to get into the real estate market!