Archive for the Market Trends Category

El Cerrito Market Trend

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The chart displayed is a regression analysis of sales in El Cerrito since 2006.  The sales data is expressed in $/sq ft of the houses living area.

 

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Values in El Cerrito  started dropping in early 2007.  It took until early 2012 for  prices to stabilize.     During 2010 the percentage of distressed sales was 20% compared to 4% today.   The prices are still not up to what they were in 2006-  about 10% lower, but the market is continuing to improve including both number of sales and sales prices.

 

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Market Turn Around in Rodeo?

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We have been appraising in Rodeo since Nancy first got started in the appraisal business more than 22 years ago.   Rodeo is a particularly dynamic market and very sensitive to the overall forces affecting real estate.  Accordingly, during the up years it rose quickly and  in autumn of 2006, it sank like a stone.

The chart at the right gives you an idea of what I am talking about.  It starts  at the beginning of 2006.  I have plotted the dollars per square foot of  gross living area  of the houses  in Old Rodeo as it changed with time.  The all-time high of $400/sq ft  occurred around mid-summer in 2006 and began to drop rapidly  in the fall.  It continued to plunge downward until around August 2009, where it settled at around $125/sq ft. That was a 69% drop in value! At this point in time we  see the market start to pick up.

Almost all the local sales are foreclosures or short sales. In 2009, there were 67 sales,  50 of which were foreclosures (REOs) and 7 of which were short sales.

Home prices are being set by these distressed sales and this may continue for some time. Nevertheless, it looks like at this point we may have hit bottom as far as prices go.  It may be a good time to buy!

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