When you hear Napa, Sonoma, and Solano, you may think more about cabernet sauvignon and chardonnay, not condominiums. However, one of California's wine country sides is becoming one of the hottest condo markets in the country.

Condo sales in the nine-county area surrounding the San Francisco Bay are shooting through the roof, ranging from sales increases of 2.7 (San Mateo) to 188 percent (Sonoma). The Marin Independent Journal reports the upward swing of each county year over year for the month of September 2008. The driving force is the downward spiral of prices over the last year in the region.

Solano County has experienced a drop of 67 percent year over year, and had a median condo sales price of $92,000 in September – down from $284,000 in September 2007. While foreclosures and economic uncertainty have driven the sales prices of housing in central California, "in Marin, foreclosure sales … accounted for 14.9 percent of total sales, continuing a steady increase from 13.5 percent in August and single digits a year ago," according the paper's online version at marinij.com.

The paper quotes Coldwell Banker broker George DeSalvo, "who specializes in real estate owned, or REO, properties that have gone through foreclosure, said Marin's real estate market has 'touched bottom.'

"When you sell a condo in the (San Rafael) Canal district for $225,000, that's perceived as the bottom of the market," he said. "The investors are coming out and they're buying these for 50 cents on the dollar."

Published: December 15, 2008

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