California, including the bay area, suffered a slow-down in their January housing market this year. According to DQnews.com, the California housing market dropped in sales compared to December of last year because of a "demand shift." Since California tops the nation's list for foreclosure rates, realtors noticed the buyers targeting more affordable foreclosed homes and inland homes.
MDA DataQuick of San Diego announced that 4,853 new and resale houses and condos "closed escrow in the nine-county Bay Area in January." December of last year showed sales for the same dwellings hit 7,828, which is a 38 percent decline. January 2009 had 5,050 sales of new and resale houses and condos. Apparently, decline in sales is normal for that time of year, but foreclosure rates on the high, and now sales going down is still cause for concern.
“The January figures show the market lost some of the momentum it had built up in the second half of ’09, when home buyers rushed to ensure they could take advantage of a tax credit, ultra-low mortgage rates and lower prices,” stated John Walsh, MDA DataQuick president.
"It’s difficult to gauge how much of the slowdown stems from a thinner inventory of homes for sale in some areas as opposed to lower demand,” he stated. “Whether last month’s relatively weak performance portends any substantial, lasting changes in the market is unclear. One month doesn’t make a trend and, in the past, January hasn’t proven to be very predictive.”
Deals that are finalized over the holidays (late November through early January) mostly affect the January sales that closed escrow that month. Investors and first-time home buyers remained the most committed housing market consumers, which altered the " sales toward foreclosures and other lower-cost properties."
Source: MDA DataQuick
Written by Amy Munday
Huliq.com
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