Monterey County Home Sales Surge in September

Sales of single-family, re-sale homes in Monterey County were up 226.3% over last September. This is the six month in a row home sales have been up year-over-year. Home sales were down 3.7% from August.

Year-to-date, home sales are up 59.9%.

Nevertheless, statistical home prices continue to fall due to the large number of bank-owned properties being sold. We expect the surge in sales to, eventually, reduce the bank-owned inventory.

The median price for homes fell below $300,000 for the first time since June 1999, reaching $280,500, a decline of 8% from August and a fall of 58.3% from last September.

Inventory was down 30.5% from last September. This is the six month in a row inventory has declined year-over-year.

Our Days of Inventory indicator is at 204 days. In a balanced market, the supply of homes is usually around five to six months.

Condo sales were also strong in September, up 180% year-over-year.

The median price for condos was off 65.1%.

The bank-owned property is clustered in the condo and entry-level home market. They constitute the largest percentage of sales, thereby driving down statistical prices.

The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or property, call me.



Click here for current Monterey County Home Sales, City by City.

Click here for our Monthly Market Trends Newsletter.

The "Great Depression?" I think not!

Lately I have been hearing and reading about comparing today's financial wows and the condition of our economy to that of the great depression. While looking around on the web, I ran across this great comparison to the Great Depression...

I think the media is blowing things just a bit out of proportion, don't you?

Mark

Interest rate lowered 1/2 point

FED, WORLD BANKS, LOWER SHORT-TERM INTEREST RATES BY HALF A PERCENTAGE POINT

The Fed, in concert with several world banks today lowered key lending interest rates by half a percentage point in an effort crafted to curb economic damage from the U.S. financial crises that has been spreading across global markets.

The move follows Monday's sharpest declines in several years on Wall Street and Friday's passage of the historic $700 billion Emergency Economic Stabilization Act of 2008.

"Inflationary pressures have started to moderate in a number of countries, partly reflecting a marked decline in energy and other commodity prices," the Fed said in a statement announcing the rate cuts. "The recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further the upside risks to price stability. Some easing of global monetary conditions is therefore warranted.

"The Fed's short-term rate now stands at 1.5 percent, and the European Central Bank's rate is 3.75 percent. The joint action to lower the federal funds rates will allow central banks to push for new lending between banks around the world without risk of challenges from banks with relatively higher levels, according to analysts.