Hollister
– San Benito County median home prices have hit a plateau while
home prices nationwide tumble.
New home prices fell nationwide last month by the largest amount
in 35 years. After years of increases and hot markets, further
declines are a possibility.
Hollister – San Benito County median home prices have hit a plateau while home prices nationwide tumble.
New home prices fell nationwide last month by the largest amount in 35 years. After years of increases and hot markets, further declines are a possibility.
The median listed single-family home price in San Benito is $669,000. The median home price indicates that half of the properties on the market cost more and half cost less. In May the median single family home price in San Benito was $670,000. The median price of single family homes in the county in which escrow has closed since the beginning of the year is $600,000. In 2003, the median price hovered around $388,000.
The biggest difference in the market is the number of days homes stay on the market, up from 32 days in May to 70 days in October, said Dee Brown, a broker associate with ReMax Platinum Properties in Hollister.
“Due to the number of homes on the market buyers have more choices and sellers have more competition,” Brown said.
San Benito County has followed a statewide trend.
Median prices for single-family homes have stabilized in the past year, according to a California Association of Realtors report. Ed Fuchs, executive vice president of Central Pacific Mortgage in Folsom, Calif., said sales transactions are down throughout California. There are seven to eight months’ worth of houses on the market, Fuchs said. During a hot period, there are only two months’ worth, and during a normal period there are four to five months’ worth of inventory, he said.
The increase in days on the market reflects the buyer’s upper hand.
“I think it’s clearly shifted to a buyer’s market,” Fuchs said.
Fuchs said there are plenty of buyers out there, but they are standing on the sidelines, believing that with every month that passes homes will be cheaper.
The 2007 California housing market forecast by the California Association of Realtors sees the stabilization continue with a possible decrease in California home prices and number of total transactions, continuing the buyer’s market.
Interest rates see slight changes on a daily basis, Brown said. But the federal funds rate has only increased a quarter percent since May, slowing its tightening on credit. Interest rates should stay stable in 2007.
“I think the forecast for interest rates are to hold pretty steady,” Fuchs said.
Certain regions of California, such as the Central Valley, San Diego and San Bernardino, will experience greater declines in 2007.
Brown said real estate agents have seen an increase in foot traffic at open houses.
“Locally it seems to be a fairly stable market,” Brown said, “with new listings and new sales each day.”
Michael Van Cassell covers public safety for the Free Lance. He can be reached at 831-637-5566 ext. 335, or at [email protected].
