The first quarter has been interesting. We’ve broken the market into price segments and tallied up the action going on in each bracket. Then we compared this year’s first quarter activity to the first quarter of 2008. The numbers are telling, and they probably explain why medians have come down so far this year. Here are the bullet points from our research:
- Activity in the lowest price bracket, under $499,999, actually increased by nearly 15% year over year.
- The next bracket, $500,000 thru $999,999 saw a drop in activity of nearly 29% year over year.
- $1M thru $1,999,999 saw a more significant drop in activity, with a 55.78% decline in the number of transactions compared to Q1 2008.
- And the highest portion of the market, $2M and above, is hurting the most, with a 71.08% drop in activity!
- Total Sales Volume for all price brackets is down nearly 35% year over year thus far.
- With more action taking place on the low end of the market and less on the high end, it’s no wonder why median prices are down so much this year.
When we published our Q1 2009 Report, we mentioned that we had noticed these trends in the marketplace, and now we have the numbers to prove the point. This is very useful information if you’re in the market right now. As we mentioned in our report, the time is ripening for buyers to get into the higher ends of the market. Jumbo money has slightly loosened up recently and rates have eased. If you’re selling on the low end, it could be a good time for you as well.
Want the full spreadsheet? Click HERE.
*Please note that the total number of sales is for San Francisco only, and property types include single family homes, condominiums, stock cooperatives, lofts, TICs, and 2-4 unit buildings.
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