Bay Area home sales still slow, Prices Still Up

Bay Area homes continued to sell at their slowest pace in 12 years last month, led by sharp declines in many lower-cost neighborhoods. At the same time, sales tended to fare much better in higher-priced areas, which helped push the region's overall median sale price to a new peak, a real estate information service reported.

A total of 7,964 new and resale houses and condos were sold in the nine-county Bay Area in June. That was down 1.4 percent from 8,080 in May, and down 26.5 percent from 10,830 for June a year ago, according to DataQuick Information Systems.

The median price paid for a Bay Area home increased last month to $665,000, a new peak. That was up 0.8 percent from $660,000 for the month before, and up 2.6 percent from $648,000 for June last year.

The median declined in Solano, Sonoma and Napa, the three most affordable Bay Area counties, while it increased in Marin, San Francisco and San Mateo counties, the three most expensive.

Read entire report HERE

Housing Starts Beat Forecasts; Permits Miss the Mark:
Housing starts were up 2.3% to 1.467 million annual starts, an about face from May's revised 3.4% drop to 1.434 million. Originally, the Commerce Department reported a milder 2.1% drop in May. June starts beat economist forecasts, who thought starts would fall 1.6% to 1.45 million. Overall, housing starts are now down 25.2% from June 2006. On Tuesday, the National Association of Home Builders said its sentiment index fell to its lowest level since January 1991 amid worries over higher interest rates and problems in the subprime mortgage market. However building permits, which are a more clear indication of future activity, fell 7.5% to 1.406 million annually in June, reversing a May gain of 4.3%. Economists thought permits would fall a milder 2.6%. Broken down, single-family home starts dropped 0.2%, two-or-more family units were up 12.5%, and multi-family units (5 units or more) were up 12.9%. "The housing market remains fairly shaky," said BMO's Sal Guateiri. "All of the strength" was in multi-family housing. Next week June sales of new and existing homes will be reported.

Investors, light rail boost Central Corridor rental rates:
from the Arizona Republic, reports that office lease rates in the Central Corridor have risen to $23.62 per square foot, driven by less expensive properties attractive to investors, and by the light rail which is expected to fuel future growth and activity in the corridor. The $23.62 average lease rate is up more than $6.00 per square foot from two years ago. In addition, the vacancy rates are significantly lower than they were only a couple of years ago. The numbers signal a resurgence of sorts for a submarket that has long "played second fiddle" to more exclusive areas such as the Camelback Corridor or the Scottsdale Airpark, said Charles Miscio, first vice president with CB Richard Ellis's Phoenix office. The article also notes the per square foot office lease rates for other market areas of the Valley, including the Camelback Corridor at $33.23, Scottsdale Airpark at $29.32, Glendale at $27.78, Downtown Phoenix at $27.61 and Downtown Mesa at $15.66.

Housing Bubble and Real Estate Market Tracker from SA for 7/18