Homes and Real Estate Blog

Though many areas in California have had a hard time weathering the real estate storm of 2008-09, the market for Santa Rosa real estate has fared better than many. Though inventory has increased and home values have fallen to a degree, the city has come out much better than many of its counterpoints in the state.

According to the California Association of Realtor’s data, in October, the prices of real estate in Santa Rosa actually rose, albeit by just 1.7%, compared with the same period of last year. Prices stood at a median of $300,000, up from $295,000 in October 2008.
Though prices are up slightly, they are still down from highs in October 2007, when prices were regularly around $450,000.

According to local realtor Beth Robertson, sales activity is up as well over the same period last year, although it is off slightly from recent highs of sales volume reached during the summer, with around 180 sales during November, up from less than 150 at the same time last year. Condominium sales, too, saw recent peaks over the summer months but have since steadied back.

The amount of inventory of homes for sale in Santa Rosa shows reason for optimism as well. The current inventory stands at just around a two months’ supply, which is considered a favorable seller’s market, and is down from a peak of a 16-month supply in October and December of 2007.

Over the past couple of months the city of Nashville in Tennessee has offered a promising view of its future.  The Nashville real estate market has been on the rise during the fourth quarter of 2009, with levels beginning to rise above levels seen in 2008 during the same time period.  Despite the continuing decline in median price, home sales have begun to increase significantly, something many real estate experts claim was caused mostly in part by the federal first-time homebuyers tax credit.   Many realtors are optimistic that the coming months will bring more success as prospective buyers rush to close on properties before the tax credit expires.  Nevertheless, due to the still declining median prices and struggling luxury housing markets and commercial real estate in Nashville, many people aren’t convinced that the Nashville real estate market will make a full recovery until the end of 2010 or most likely 2011.

According to the Tennessean, home sales in Nashville shot up in November by 58.7 percent compared to that of the previous year.  Sales in October even rose by 23 percent.  In November, Nashville realtors reported that approximately 1,973 homes were sold, a significant increase from the 1,243 sold in November of 2008.  Most realtors in the area attribute the significant increases to the federal first-time homebuyers tax credit.  Much activity took place towards the end of November when the tax credit was expected to expire, but since the expiration date has been extended to April, realtors hope that the tax credit will continue to spur an increase in Nashville real estate activity that will lead to a successful recovery sometime next year or in early 2010.

On another note, the Nashville Business Journal has noted that the high-end luxury home real estate in Nashville continues to struggle as sellers are having a difficult time finding buyers willing to pay a lot of money given the current economic situation.  In October, there were only 14 luxury homes sold in the Nashville region.  Despite slow sales, many real estate experts are optimistic that the luxury home market will show signs of improvement over the next few months.

The state of Maryland continues to suffer as a result of the recession that began in the fall of 2008.  Home sale and median sales price levels continue to fluctuate and real estate experts don’t have any solid signs of consistent improvement to be made in the coming months.  Although some surprising luxury home sales and increasing number of construction or renovation projects have taken place over the past months, real estate experts aren’t certain that the real estate in Maryland has hit bottom and is ready to rebound.  Many experts feel that recovery won’t begin until late 2010 or 2011, and looming fears of another wave of foreclosures in the Maryland commercial real estate market many prolong the expected recovery.

According to the Baltimore Business Journal, many Maryland-based banks are increasing their reserves for the expected wave of problem loans, especially those in the commercial real estate market.  Both the residential and commercial real estate markets are struggling in Maryland as job security is becoming a major problem.  Commercial real estate vacancies are high and many companies are struggling to pay increasing rents.  Many experts in Maryland believe that the number of successful businesses in Maryland will determine the success of both the commercial and residential real estate market since jobs will become more stable.  The Baltimore Business Journal has also reported that based on a LoopNet survey, many real estate experts don’t expect the Baltimore real estate market to recover until 2011.  A majority of experts also believe that Baltimore will continue to experience declines over the next year until it bottoms out sometime during mid 2010.

The Baltimore Sun has also reported that despite a weak real estate market in Baltimore, many contractors are experiencing increasing construction and renovation projects.  As many prospective home-buyers are opting to invest only in low-end, affordable housing, many home and apartment owners are opting to make slight renovations to make affordable housing options even more attractive.  Currently, most of the activity in the Baltimore real estate market is in the lower priced homes and apartments, with luxury properties continuing to struggle to find buyers.

One of the Midwest’s largest and most centrally located cities, St. Louis is a thriving hub of activity. Despite its diversified economy, however, the city has not been immune to the ill effects brought about recently by the burst in the larger U.S. housing market bubble and the slide in prices nationwide.

Recently, however, the St. Louis real estate has seen a bit of a rebound, though it has not yet recovered to pre-crisis levels. According to the St. Louis Post Dispatch, in October, sales of existing homes in the St. Louis area were up by 27% from the same period of 2008, higher than the national average of a 24% increase. Sales were up in all 11 counties in the metro area, with St. Louis County accounting for the highest increase, with 36%.

Though sales volume gives reason for optimism, home values still have a way to go before recovering. In St. Louis County in October, the median price for residential real estate in St. Louis was $135,000, up by just $100 from the same period of 2008. That figure was negative in five counties in the metro area, though six counties showed positive increases, mostly spurred on by last year’s glut of underpriced foreclosed homes.

No doubt, many buyers searching the market for homes for sale in St. Louis are looking to take advantage of the federal government’s tax stimulus program, which offered rebates of up to $8,000 to qualified first-time home buyers. The rebate was recently extended to even more buyers by Congress, and will undoubtedly continue to drive the market.

Des Moines real estate is selling quicker these days.  Donnelle Eller of the Des Moines Register reported November 11, 2009, that “Des Moines-area home sales rose nearly 39 percent in October, and leaders hope an expanded federal tax credit will drive sales beyond the first-time homebuyer market.” Additionally, more good news was realized when the year-over-year figures were announced.  “The sale of homes priced between $100,000 and $175,000, typically the price range for first-time buyers, was 50 percent higher than a year ago.”  Real estate in Des Moines, unlike the rest of Iowa, has begun to flourish while the state as a whole continues to flounder.  “Iowa’s third-quarter home sales climbed 7.7 percent compared with a year ago. Iowa is on pace to sell 61,600 homes in 2009, but nationally, sales were nearly 6 percent higher.”

To minimize a massive inundation of foreclosures on the real estate market in Des Moines, “the state received $11 million in federal recovery funding to help Iowans keep or find affordable rental housing.”  The money comes from $1.5 billion in federal recovery funds to prevent homelessness, especially low-income families facing eviction or foreclosure.  “The program’s assistance ranges from budget counseling and case management to security and utility deposits, moving costs and 18 months of rental assistance, which includes up to six months’ back rent.”  Thousands of homeowners are applying for assistance in order to keep these homes.  Because of this initiative, Des Moines has less foreclosures than national averages although the number of foreclosures in the local market is beginning to rise.

New Des Moines homes for sale have suffered most due to the global recession.  In fact, the median price of new homes in the Iowa city dropped more than 13 percent between October and November of this year, according to Yahoo! Real Estate.  Unusually, foreclosures rose in price 7.5 percent to just under $84,000, based on about 550 listings.