Here is a comparison between Single family Homes Sold for YTD 2011 (Jan-May) vs. YTD 2010 (Jan-May) by city. As you’ll see, foreclosures have fueled a lot of the increase in the # of sales this year in a lot of the cities. The City of San Luis Obispo is the only one that has had a decrease in foreclosures and an increase in non-distressed sales over last year at this time.
This chart helps to explain why median home prices are declining so far this year while the number of home sales is increasing. Until the foreclosures become a very small percentage of sales, we’re going to see home values continue to decrease as the banks (and the Realtors representing them) continue to price foreclosures below market values in a neighborhood.
Percent change in Single Family Homes Sold YTD (Jan-May) 2011 vs. 2010.
|San Luis Obispo||-26%||17%|