Comments for DWRE News & Economic Updates http://darryllwhaley.com/blog I’m Sending Signals Your Way Thu, 10 Jul 2008 22:24:31 +0000 hourly 1 http://wordpress.org/?v=3.0.1 Comment on May 2008 Zip Code Statistics over 2007 by darryll http://darryllwhaley.com/blog/?p=51&cpage=1#comment-13 darryll Thu, 10 Jul 2008 22:24:31 +0000 http://darryllwhaley.com/blog/?p=51#comment-13 Peter thanks for your comments. Real Estate has been deemed a "stratified" industry since it is the most uncertain and speculative investment one can have at any given time. If you have heard of the term "Real Estate is both Art & Science," the May 2008 Zip Code Statistics delivered top your desktop would probably fall under that category. Considering all of the houses that sold in the pre short-sale environment + the decreasing prices of today + lenders off-loading homes at ridiculously low prices = statistics that will take some time to adjust back to an ordinary state across the board (or across areas). This will most likely happen when the pendulum is not slanted so much to one side. When = when the inventory gets gobbled up and homes are not getting turned back in to the banks. In my viewing of the February 2007 Statistics, I saw this same odd trend towards differing square footage values and average values that were somewhat off compared to close by neighborhoods in the same and other zip codes. This is/was an indication that homes were starting to sell at values not normally seen. Keep an eye on these same indicators and you will see them adjust over the next several months. As they do you will also see sales prices rise and equilibrium in the market will occur. Hence the end of a cycle. Peter thanks for your comments. Real Estate has been deemed a “stratified” industry since it is the most uncertain and speculative investment one can have at any given time. If you have heard of the term “Real Estate is both Art & Science,” the May 2008 Zip Code Statistics delivered top your desktop would probably fall under that category. Considering all of the houses that sold in the pre short-sale environment + the decreasing prices of today + lenders off-loading homes at ridiculously low prices = statistics that will take some time to adjust back to an ordinary state across the board (or across areas). This will most likely happen when the pendulum is not slanted so much to one side. When = when the inventory gets gobbled up and homes are not getting turned back in to the banks.

In my viewing of the February 2007 Statistics, I saw this same odd trend towards differing square footage values and average values that were somewhat off compared to close by neighborhoods in the same and other zip codes. This is/was an indication that homes were starting to sell at values not normally seen.

Keep an eye on these same indicators and you will see them adjust over the next several months. As they do you will also see sales prices rise and equilibrium in the market will occur. Hence the end of a cycle.

]]> Comment on May 2008 Zip Code Statistics over 2007 by Peter Maclennan http://darryllwhaley.com/blog/?p=51&cpage=1#comment-12 Peter Maclennan Thu, 10 Jul 2008 16:46:41 +0000 http://darryllwhaley.com/blog/?p=51#comment-12 It is interesting to note the varying levels of pricing even within the same city. Concord and Walnut Creek both have a wide differential in the range when comparing the Price per Square Foot. The 94596 Zip Code has actually had an increase of 1% in the $/Sq. Ft. category. When comparing the median price to the price/square foot some of the zip codes are opposites. The Walnut Creek zip code of 94597 had an increase of 18% in the median price range but the price per square foot is down 14%. Do you think that one of these measurements is better than another to assess the true state of a market? It is interesting to note the varying levels of pricing even within the same city. Concord and Walnut Creek both have a wide differential in the range when comparing the Price per Square Foot. The 94596 Zip Code has actually had an increase of 1% in the $/Sq. Ft. category.

When comparing the median price to the price/square foot some of the zip codes are opposites. The Walnut Creek zip code of 94597 had an increase of 18% in the median price range but the price per square foot is down 14%. Do you think that one of these measurements is better than another to assess the true state of a market?

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