Oakland California Condo Market Shows Signs of Stability in Q1 2010
The Oakland condo market has had its ups and downs in the past half dozen years. Former Mayor Jerry Brown's 10K initiative, designed to spawn 6000 new downtown housing units which would eventually accomodate 10,000 new residents started this downtown resurgence.
But the bubble burst with condo prices peaking at an average of $452 per square foot. Prices averaged $316 per square foot in calendar year 2009 and have stayed at exactly that number for the first quarter of 2010. Good news indeed and evidence that the market has stabilized.
Distressed sales have accounted for much of the drag on prices, but as of the end of Marcy 2010, the number of bank owned units and short sale listings on the market represented less than half of those for sale. There were but 14 bank owned listings and 43 short sale listings on March 31, 2010 out of 153 total listings. These figures represent the five zip codes contiguous with downtown Oakland.
Savvy buyers have been finding real deals in this market as bank owned properties and even short sales that have come to market at below market prices have attracted tons of bidders. Feeding frenzy indeed. Often the successful bidders have been investors willing to pay all cash and close very quickly.
Unsold inventory in this downtown Oakland market area remains at a manageable 5 months, up slightly from 4.6 months in February. Still a buyer's market but quite close to the magic 3 month mark which denotes a seller's market.
Watch for prices to inch up over the next quarter as things stabilize even more.
But the bubble burst with condo prices peaking at an average of $452 per square foot. Prices averaged $316 per square foot in calendar year 2009 and have stayed at exactly that number for the first quarter of 2010. Good news indeed and evidence that the market has stabilized.
Distressed sales have accounted for much of the drag on prices, but as of the end of Marcy 2010, the number of bank owned units and short sale listings on the market represented less than half of those for sale. There were but 14 bank owned listings and 43 short sale listings on March 31, 2010 out of 153 total listings. These figures represent the five zip codes contiguous with downtown Oakland.
Savvy buyers have been finding real deals in this market as bank owned properties and even short sales that have come to market at below market prices have attracted tons of bidders. Feeding frenzy indeed. Often the successful bidders have been investors willing to pay all cash and close very quickly.
Unsold inventory in this downtown Oakland market area remains at a manageable 5 months, up slightly from 4.6 months in February. Still a buyer's market but quite close to the magic 3 month mark which denotes a seller's market.
Watch for prices to inch up over the next quarter as things stabilize even more.