www.dqnews.com/News/California/Bay-Area/RRBay080313.aspx
A total of 3,989 new and resale houses and condos sold in the nine- county Bay Area in February. January and February are the two slowest months in DataQuick's statistics, which go back to 1988. "The lending system has been in lockdown mode the last half year, especially when it comes to so-called jumbo mortgages which have traditionally been the majority of Bay Area loans. Sure there are price declines out there, especially in inland markets. But it's not realistic to think many sellers are going to drop a $600,000 or $700,000 asking price down to $550,000 just so a buyer can finance with a conforming loan. We can only conclude that a lot of activity is just on hold, hence the spectacularly low sales counts," said Marshall Prentice, DataQuick president. "With the Federal Reserve trying to pour Draino into the lending system, it will be interesting to see how things play out if jumbo financing does come back online. Theoretically, there could be enough pent up demand, enough catch-up activity at the high end, to result in a statistically bizarre record median home price," he said. Last month's median price would have been closer to $600,000 if the availability of jumbo home loans had remained stable. DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. Due to late data availability, the February statistics for Alameda County were extrapolated from the first three weeks of the month. The typical monthly mortgage payment that Bay Area buyers committed themselves to paying was $2,446 last month, down from $2,503 the previous month, and down from $2,884 a year ago. Adjusted for inflation, current payments are 73 percent below typical payments in the spring of 1989, the peak of the prior real estate cycle. Indicators of market distress continue to move in different directions. Foreclosure activity is at record levels, financing with adjustable-rate mortgages is at a six-year low. Down payment sizes and flipping rates are stable, non-owner occupied buying activity is increasing, DataQuick reported. com Media calls: Andrew LePage (916) 456-7157 or John Karevoll (909) 867-9534 Copyright 2008 DataQuick Information Systems.
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