California Shows Biggest Price Increases

Inman News 

22 January  2009

Home sales increased and prices decreased year-over-year in November, according to a monthly report released by real estate data and analysis company Radar Logic Inc. Thursday.

Home sales across 25 metro areas nationwide increased 1.5 percent month-to-month and 46.7 percent year-over-year in November, as indicated by transactions completed through the company’s Residential Property Index (RPX). The index measures changes in the price per square foot of homes.

Transactions increased in nine of the 11 months ending in November 2009, including those from July to October, when sales typically decline.

“We believe that the housing market is poised for significant recovery,” said Michael Feder, president and CEO of Radar Logic.

“Affordability measures are at their highest levels in years and home sales are moving toward normal levels. Nationwide, foreclosure sales have declined from 29 percent of total sales in November 2008 to 23 percent of sales in November 2009.”

Prices decreased 4.2 percent across all 25 metropolitan areas. Eight of those areas experienced year-over-year price increases, the highest number since July 2007. Half of those areas were in California. San Diego, Calif., led the way with a 6.8 percent price increase, to $211.32 per square foot, while San Jose saw a 5.5 percent increase, to $338.37 per square foot.

Los Angeles and San Francisco, two of the country’s five largest metro areas, experienced fewer motivated (i.e., distressed) sales: 27.2 percent and 22.3 percent of sales, respectively, from 44 percent and 37.6 percent in November 2008.