The median home sales price has continued to soften into the spring, for many areas of Oakland and the Eastbay.
Data for the fourth quarter of 2011 indicates that the broader economic trends have impacted all areas of Oakland and the Eastbay communities. However, there is some evidence that this pattern is moderating and prices may be firming up.
The high level of distressed housing, most evident in the outlying suburban regions of newer developments, continues to have a strong impact throughout the entire San Francisco/Oakland region. The low to moderate priced housing market has suffered most from bank-owned and foreclosure properties. Buying power is limited, giving investors with cash a strong position. The housing supply remains higher than demand, so prices remain on the soft side.
Oakland is a city with a housing market that is best characterized by its micro-geography. The low and moderate priced housing tends to be to the southeast and west of downtown. The recession has had its greatest impact in these neighborhoods. Higher levels of foreclosures are evident there, but also spread unevenly into the hill areas of Oakland.
In the middle to higher price range, supply is more limited, as sellers have more options; including holding their properties off the market until the market improves. Foreclosure/short sale properties are occuring also into the higher priced range. However, this group is more impacted by the current shortage of move-up buyers hamstrung by their own mortgage or financing problems.
In the moderate to mid-range, quality properties that are priced well to market value are drawing multiple offers again. Residential income property is doing well, as rents have increased significantly.
In summary, Buyers with good credit and strong finances are in a good position to purchase in the Oakland-Berkeley market. Prices are not uniformly impacted by the macro-economic forces in the larger regional housing market. And interest rates continue at or near historic lows. In the long view, this is a good time to buy a home.
ZIP Codes: 94602, 94605, 94609, 94610, 94611, 94618, 94705 Approximate Location Boundaries: East end of the San Francisco Bay Bridge and extending to the crest of the Eastbay Hills. Berkeley to the north and San Leandro/Castro Valley to the south.
Location Characteristics: Oakland has an amazing variety of communities, ethnicities and microclimates within its boundaries. Victorian homes and high rise condominiums share views of Lake Merritt; one of the few tidal lakes in the world. This urban jewel is surrounded by a park, recently upgraded and frequented by walkers, joggers, children and wild bird watchers. Nearby Lake Merritt is the rejuvenated downtown commercial and office center of Oakland, as well as residential neighborhoods with a variety of housing types.
Rising up the hills are a range of moderate to higher priced residential neighborhoods, crowned by large luxury homes with breathtaking panoramic views of the San Francisco Bay and the Golden Gate Bridge.
Many of these neighborhoods have vibrant retail/shopping areas,ie; Montclair, Rockridge, Piedmont Avenue, Grandlake, Glenview and Laurel, each with its own unique character and attraction.
About Howard Converse:
My goal is to help you understand the local real estate market so that you can make informed decisions whether to buy or sell your personal residence or investment property.
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
