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| Northern California housing market showing no signs of recovery through 2011 |
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MetroStudy Report - (Northern California– August 1, 2011) Considering the market volatility, the Bay Area is performing much better than Sacramento and is beginning to show signs of stabilization, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market. The overall Bay Area economy has been showing signs of slight growth this year. “The region’s job market is stronger than most throughout the state but the prior losses were significant,” said Greg Gross, director of Metrostudy’s Northern California Region. The Regional unemployed population is 10% compared to the State level of 11.8% Northern California Annual Housing starts are down 36% to 4,081 from 2Q10, while closings are down 47% to 6,225. Closings have been outpacing starts for more than three years now. As a result, inventory levels are now below equilibrium, especially in the Bay Area. In 2Q11, with 3,321 Finished Vacant homes, the market now has 6.4 months of supply. While Single Family Detached inventory figures are substantially below equilibrium now, with only 781, a 2.3-month supply of finished and vacant homes. The inventory level of Attached product has declined, with 2,540 finished and vacant units, a 13.8-month supply with the majority in the Bay Area. “Without a doubt, the Bay Area remains a relatively unaffordable market in contrast to the Central Valley and Sacramento markets,” said Greg Gross. Finished Vacant inventory had grown to levels that were problematic, but as of 2Q11, these levels are now below equilibrium. Fortunately, the Bay Area appears to be adjusting well and inventory levels are becoming much more manageable if not too low. Specifically, the Bay Area had 626 starts and 742 closings in 2Q11. While the Sacramento market had 339 starts and 360 closings in 2Q11. “Metrostudy expects the Bay Area housing market to continue improving through 2012 as the job situation gradually improves and housing inventory shrinks,” said Greg Gross, “but we are less optimistic with the Sacramento market as job losses in the Government sector will strain growth.” For information contact: greg gross @ 916.873.7840 This e-mail address is being protected from spambots. You need JavaScript enabled to view it |
