For quite some time we were enjoying strong real estate market here in Silicon Valley and generally up and down the Peninsula while national headlines continue to report declining prices and excessive inventories. The latest data from Realtor.com shows that a broad recovery of the real estate market is gaining momentum.
Out of 146 regional markets tracked by the company, all but two showed a drop in inventory of single family homes, condominiums and townhomes. On the national level, the number of homes for sale declined by 21.48 percent in March 2012 compared to a year ago. Over the same time period, the median list price increased in 122 markets.
Eight out of top 22 best performing markets are in California. Oakland was ranked number one in the nation with 51.91 percent inventory drop accompanied by 13.94 percent median list price increase. Other local markets were San Jose ranked 14th and San Francisco in 21st place.
Palo Alto was not ranked by Realtor.com due to the size of the market but it would be right at the top of the list with 49.43 percent year-over-year inventory decrease and 13.97 percent increase of median listing price. The four markets with the largest year-over-year increase in median list price are Phoenix AZ, Miami FL, Boise City ID, and Punta Gorda FL.
These positive indicators contrast with the situation at the beginning of the 2011 home buying season, when the median list price was down by 4.81percent nationally on an annual basis and the age of the inventory was up by 26.14 percent. If the market continues to hold its own, 2012 could well mark the beginning of a broad-based housing recovery.
Michael Talis is co-owner of Talis Real EstateMarch 2012 Real Estate Market Statistics California Metro Areas National Ranking YY Inventory Drop YY Median List Price Change Oakland 1 -51.91% 13.94% Bakersfield 2 -50.35% 7.70% Fresno 4 -45.56% 7.05% Stockton-Lodi 12 -36.18% -1.84% San Jose 14 -35.82% 10.01% Riverside-San Bernardino 17 -33.41% 5.49% San Francisco 21 -31.60% 3.20% Sacramento 22 -31.41% -4.35%