Soft Bottom Appears For Home Prices

“In the San Francisco Bay Area and across California we continue to see the market moving gradually back toward a more normal balance of sales across all price ranges. The high end of the market finally has a pulse and that has led to a swift rise in the median sale price. It’s the opposite of what we saw two years ago, when the credit crunch slammed the brakes on jumbo lending and sales of more expensive homes screeched to a halt. That triggered a near free-fall in the median sale price,” said John Walsh, MDA DataQuick president (August 21, 2009).

What does this mean for first-time homebuyers?

Answer: The timing is right!

The California Association of Realtors determined that (as of 2Q 2009) the "First-Time Buyer Housing Affordability Index" is at 55% in the SF Bay Area. The same time last year it was only estimated that 33% of households could afford to buy an entry-level home here.

Additionally, "creative financing" seems to be showing glimpses of reviving itself. DataQuick reported that Bay Area homes purchased with adjustable-rate mortgages (ARMs) rose 6.6% in July.