The figures for the 1st quarter have come in with some predictable results. Housing sales are way up (almost 200% in Hayward!) with the bulk of these sales in the lower end markets. Foreclosures have been the bread and butter of this market with Short Sales and REOs bringing in buyers from all over. I've had one eager man in New Zealand who has been buying up properties in Richmond.
The low interest rates combined with the $8000 tax credit has made first-time buyers and investors dive into affordable East Bay and Oakland Real Estate. The median sales price of homes sold has dropped dramatically because of the focus on the lower end market. The median price of a Oakland home sale has dropped 70% since the same quarter last year. While many areas of Oakland and Berkeley have retained much of their value, pockets of West and East Oakland have seen sales in the low $80,000 or less for a 2bed/1 bth home. Oakland had a 121% increase in home sales over the same quarter last year. In the more affluent areas of Oakland and Piedmont, sales have slowed but the median prices are holding steady.
With the possibility of more foreclosures coming on the market in the next few months I see an increase in sales but the prices for homes becoming more and more affordable.