Bay Area Median Home Price Slips Below $300,000

March 19, 2009 No Comments »

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The median price paid for a San Francisco Bay area home last month slipped to just $295,000, its lowest point since 1999, according to DataQuick.

That’s down 1.7 percent from January and a record 46.2 percent below the $548,000 median seen a year earlier (55.6 percent below $665,000 peak set in summer 2007).

During the month, just over 5,000 new and resale homes and condos sold across nine area counties, the fifth-lowest February since 1988, when DataQuick began collecting data.

Amazingly, sales are still up 26.1 percent compared to a very dismal February 2007, an all-time low, thanks in part to fire sales in hard-hit regions.

Of resales sold last month, 52 percent had previously been foreclosed on in the past 12 months, up from 51.9 percent in January and 22.3 percent a year ago.

Only 321 newly constructed homes sold last month, a 55 percent decline from a year ago, and the lowest on record for a February, thanks to bargain hunters focused squarely on distressed properties.

During the month, FHA loans accounted for 24.9 percent of Bay Area purchase loans, while the use of jumbo loans was limited to just 17.5 percent of purchases, down from 62 percent last year.

“A lot of Bay Area activity is basically on hold, waiting for the jumbo mortgage spigot to reopen. That could start to happen during the second quarter, although slowly,” said John Walsh, MDA DataQuick president, in a release.

“Yesterday’s move by the Federal Reserve to buy more mortgage securities could be a turning point.”

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