Metrostudy Report - (San Francisco, CA– May 1, 2011) “The Bay Area Market is performing much better than many others and is beginning to show signs of stabilization in 1Q11,” 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.

Bay Area Annual Housing starts are down 27% from 1Q10, while closings are also down 40%. There were only 515 new home starts and 733 closings in 1Q2011. Closings have been outpacing starts for more than three years. As a result, inventory levels are below equilibrium.

Finished inventory of housing has been steadily decreasing over the past year. As of 1Q11, vacant inventory levels are now below equilibrium. The Bay Area housing market has 2,650 Finished Vacant homes, meaning 6.9 months of supply; but consider the Single Family Finished Vacant inventory levels are considerably low at 411, or 1.9 months of supply.

Lot inventories in the Bay Area have also slowed over the past few years. This slow down of development will make finished lots more desirable and thus increase demand, causing prices to go down. As of 1Q11, lot Inventory for single family detached homes is 8,525, a 47-month supply. These lots will go quickly as the market continues to improve.

“It appears the market has bottomed out and will continue to evolve through 2011 and show signs of improvement by end of the year,” said Greg Gross, director of Metrostudy’s Northern California Region. “2011 will be a year of opportunity to secure long term land positions throughout the California market. A thorough understanding of competitive framework, buyer segmentation and conducting strategic planning will be vital for success and in some cases, survival.”

About Metrostudy
Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com.

Contact:
greg gross
925.826.3801
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