WatchBay Area February Home Sales at Five-year High
http://dqnews.com/Articles/2012/News/California/Bay-Area/RRBay120315.aspx
March 15, 2012
La Jolla, CA.--Last month’s Bay Area home sales bounced up a bit more off bottom, fueled in large part by investors with cash who were buying discounted properties in the lower half of the price spectrum. The median price paid for a home dropped year-over-year for the 17th month in row, a real estate information service reported.
A total of 5,702 new and resale houses and condos sold in the nine-county Bay Area in February. That was up 4.1 percent from 5,479 in January, and up 14.2 percent from 4,991 in February 2011. The year-over-year sales increase was the eighth in a row, according to San Diego-based DataQuick.
A January-to-February sales increase is normal for the season. Last month’s sales count, which got a lift from an extra business day thanks to the leap year, was the highest for a February since 6,305 were sold in 2007. It was 9.0 percent below the February average of 6,268 sales going back to 1988. The sales pace for most months last year was 25 percent to 38 percent below average.
“The market is still strange, just a little less strange than it was. We also need to keep in mind that, when it comes to statistical trends, February is the least typical month of the year. Over the winter you’re left with a higher concentration of investors and people who must buy or sell because of a major life event. In the spring, when many traditional buyers return, we’ll get a much better read on the market. Meanwhile, many potential buyers are still waiting for the lending spigot to open more. Drum-tight credit conditions continue to undermine housing, along with negative equity and the various uncertainties plaguing would-be buyers,” said John Walsh, DataQuick president.
The median price paid for all new and resale houses and condos sold in the Bay Area last month was $325,500. That was down 0.3 percent from $326,000 in January, and down 3.6 percent from $337,250 in February 2011. The median has declined on a year over year basis every month since October 2010.
Alameda........$295,000...-5.4%
Contra Costa...$235,000...-3.3%
Marin..........$535,500...+7.6%
Napa...........$320,000...-1.2%
Santa Clara....$432,000...-0.7%
San Francisco..$624,000...+5.9%
San Mateo......$492,500...-4.6%
Solano.........$172,000...-4.4%
Sonoma.........$295,000...-0.2%
Bay Area.......$325,000...-3.6%
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Pleasanton, CA
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Bay Area.......$325,000...-3.6%
Poof. Virtual money up in smoke again. Still more room to go.
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Dont forget the state is looking to increase income tax on higher earners...
Brown's revised plan would hike income tax rate on $500,000 earners
http://www.mercurynews.com/ci_20171655?IADID=Search-www.mercurynews.com-www.mercurynews.com
Brown's revised plan would put a larger burden on individuals who earn $500,000 or more a year, raising their income tax rate by 3 percentage points instead of his earlier plan for a 2
percentage point increase, while reducing his sales tax hike proposal from a half-cent to a quarter-cent. Those earning $300,000 to $500,000 would also see more of a tax hike: a 2 percentage point increase, rather than a 1.5 percentage point hike.
Of course none of this will go reduce the debt...
Any and all, short term capital gains would fall under ordinary income... so dont look to high flying valuation stock (Linked in & Facebook ) to make a big impact.