Bay Area's Housing Prices Buck National Trend

Median cost is up 6.6%, driven by strong upscale market, but number of homes sold is down 20%.

The Bay Area appears to be shaking off the nation's housing doldrums.
Local home prices are still going through the roof, even though far fewer properties are changing hands. That contradicts the national real estate trend of slumps in both price and sales volume.

Why does the region's housing seem to defy gravity?
It's the wealth effect.

"The Bay Area is one of the strongest economies in the country today," said Ken Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at UC Berkeley. "The upper end of the market in the inner areas (San Francisco and the counties closest to it) is doing extremely well. This is a completely different trend than the rest of the country."

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Realogy reacts to commission attack:

Still clearing the dust from last Sunday's "60 Minutes" segment on real estate commissions, Realogy Corp. sent the following letter to the CBS show's producers:

Dear Mr. Fager:

Your story on the real estate industry that aired on May 13th had more holes than a leaky roof.

Putting aside the inaccuracies regarding "sacrosanct" commission rates, lack of industry oversight and state governments conspiring to stifle competition, the segment grossly oversimplified the complexity of buying and selling a property.Real estate brokerage is a performance-based industry. Clearly, not all real estate companies are alike. Results will vary dramatically based on a variety of factors, including the experience and track record of the professional you select. Picking an agent to represent you based solely on discount, rebate or other cash back scheme may seem like a good idea at first glance, but not always at the closing table when all is said and done.The bottom line is that consumers have ample choice when deciding which real estate company and business model they prefer to represent them in a transaction. Competition is good for the consumer and the industry and is the basis of our free market economy. At the end of the day, the companies that offer the best value proposition to home buyers and sellers will prosper.

Respectfully,

Alex Perriello

President & CEORealogy Franchise Group

Here, Seth Winkleman fights back with (his) FACTS

Housing Bubble and Real Estate Market Tracker from SA for 5/18