Has the Concord or Clayton real estate market hit bottom?

There's no question that the last 6 years has brought much volatility to our local real estate market.  Concord, in particular, has been hit hard and in many areas has been primarily driven by distressed properties.  Bank owned homes (REO) and short sales are common place throughout many neighborhoods in Concord.   

But, have we hit bottom?  I ask because over the last few years there has been so much uncertainty. Home buyers always want to think they're jumping in to the market at the right time, and many listen intently to the media to find out when is the RIGHT time to buy?

The one thing people should know about "bottom" is that there is no signal that we've hit it, and the financial measures used to determine a low point are typically only able to be seen in hindsight. So let's look at some Concord and Clayton real estate market facts and trends. The facts and figures below are of single family homes.

• Average home sales price in Concord in February 2007 was $590,000. In Clayton, $642,000.
• Average home sales price in Concord in February 2012 was $301,000. In Clayton, $472,000.
• Average sold prices in Concord has declined 49% in the last 5 years (Feb 07 to Feb 12). In Clayton, 26.5%.
• In looking at the last 5 years, the lowest average sold price in Concord was hit in/around February 2009 at $288,000. Clayton is at the lowest level right now at $472,000.
• Of homes active on the market, our inventory now as compared to 5 years ago, is down 61% +/- in both cities.  

Today, we have a unique set of circumstances yet again. Inventory levels (i.e. homes currently active on the market) are ultra-low. Interest rates are at near record lows. Prices are at decade lows. Multiple offers are once again commonplace. Investors are out in force. The government is releasing even more programs in hopes to help more homeowners facing hardship.

If you like charts and graphs, check out Concord - Clayton real estate market, a look back, for more information and a chart for each of the stats mentioned above.

In future blog posts here on Patch, I look forward to bringing you more news and insights of our real estate market, strategies in buying and selling in today's market, and especially look forward to hearing from you!