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May Unit Sales Down 15% From
April
Inventories down,
foreclosures in limbo, Price PSF continues down
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Housing inventory
in Stockton, measured as months' sales in inventory, is at
an all time low (see the 'Months In Inventory' chart below).
Meanwhile, many homes that have been foreclosed upon have
not yet hit the market, and home sales prices maintain
their
downward trend.
Stockton's average home sales price was $127,000
in May 2009 compared to $363,000 in May 2006. The
average sales price per square foot is now $77 down from the average of
$240 per square foot three years ago.
This market is controlled by lenders, and normal supply and
demand relationships do not apply - YET. Currently, Supply
Down + Demand Up = Reduced Prices!
Meanwhile, we will probably
continue to hear about lender "investor confidence" and
"record earnings", while "stress test" results are
suppressed and ridiculous terms like "legacy assets" may
never be heard from again.
We continue to advise:
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Sellers - if you can hold
out a few years (4 ?) please do that - this muddled
market is not where you should be;
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Buyers - BUY, BUY, BUY!!!
Although the market may decline further, but it is
substantially closer to the bottom than the top. There
are deals out there that should not be passed up.
For those buyers interested in
learning about the possibility of using 401(k) or IRA
funds to buy real estate, we are hosting a seminar
featuring specialists in IRAs and the tax code on
July
16th. There is
limited seating available at afternoon and evening sessions, reserve your seat
send an email request to
ira@homes-in-stockton.com or call 209.471.6516.
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Click here
to access our free auction, pre-foreclosure, and
foreclosure search! |
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Click here
to search the MLS like a
realtor! |
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(Links are available at the bottom of this
email to detailed market reports for Brookside, Lincoln
Village, Lincoln Village West, Morada, Morada West, Quail
Lakes, Spanos East and Spanos West.) |
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Stockton Market Trend:
Current foreclosures,
increased delinquencies, and the upcoming additional
problems related to Alt-A and other adjustments
should result in a housing inventory increase and continued home price reductions.
Traditional laws of supply and demand dictate this will
happen, unless massive price controls are put in place. |
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Stockton Stats
for May 2009 |
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There were 2,335 homes for
sale in Stockton at the end of the month.
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6,879 homes were sold
in Stockton during the 12 month period ended May
2009, an average of 573 homes per month. This
compares to 196 units average per month one year ago.
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There is a 4 month inventory
on the market (see the
"Months Sales In Inventory"
chart above).
This compares to a 'norm' of 10 - 15 months in April
- July 2007, and 20-24 from August 2007 through
April a year ago.
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There should be a rash of new
inventory over the next few months unless lenders
"bank" foreclosed upon homes.
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518 units sold this month
(down 15% from last month) compared to
433 units sold this month a year ago, a 20% increase.
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The average sales price
per square foot is $77 - less than
the cost to build a home.
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The
average home sales price was $127,000.
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An anticipated
resumption of foreclosures will continue downward
pressure on
Stockton home prices.
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Click on any of the
following links for detail information on that market. |
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