Thursday, March 13, 2008

Sonoma: Sales down 44% - Price down 22%

Sonoma County home prices continued their plunge in February as sales slowed to a crawl.

Only 254 new homes, resale homes and condominiums were sold in February, down 43.9 percent from a year ago.

The median price tumbled to $400,000, down 22.3 percent from a year ago — the biggest drop in the nine-county Bay Area.

In an attempt to pump more money into the housing market, federal housing agencies agreed last week to temporarily back loans up to $662,500 in Sonoma County and as high as $729,750 in pricier parts of the Bay Area.

The program could stimulate sales of higher-priced homes, Prentice said.

The Federal Reserve is trying to pour Draino into the lending system.

A year ago jumbos accounted for 59.8 percent of all Bay Area home loans. Last month they were just 28.9 percent.

Is this going to help in Sonoma County? Can the jobs support the current lower housing prices yet?


Anonymous Anonymous said...

Until home financing improves,
there will be no buying pressure.
Even if jobs are ok, it still takes
other peoples money to buy homes.

Expect a bottom in 2009 with a
recovery in 2011 - 2012 when
everyone is fed up with it.

Dennis of Danville

10:43 AM  
Blogger Tyrone said...

Off topic:

New rules aren't providing attractive 'jumbo' loan rates in Silicon Valley
Silicon Valley homeowners hoping to take advantage of new rules designed to slash interest rates on their hefty mortgages are learning that what looks good on paper doesn't always work in the real world.

Nearly two months after Congress passed a stimulus package that changed the definition of a "conforming" loan to include amounts up to $729,750, interest rates on bigger loans remain stubbornly high and lending criteria remain tight.

The upshot: Few homeowners have found relief from worries that their mortgages could stretch their budgets to the breaking point.

8:12 PM  
Anonymous Anonymous said...

Vacation home sales are down 31% nationwide too, according to Halogen Guides Real Estate. Looks like even the rich are feeling the pinch.

3:22 PM  

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