Happy Labor Day! While some may breathe a sigh of relief
as the summer of ‘08 real estate cycle comes to a close,
there is some cause for optimism. Yes, we know that home
prices and sales volume have taken a hard hit this year.
But it’s always wise to consider ALL the data that’s out
there, not just what you hear in the news. So this week’s
update is again dedicated to giving you the data that
relates to your life on a local level… here in the San Francisco
Bay Area and greater California.
• July 2008 home sales volume in the Bay Area moved
higher in the first “year over year” gain since early 2005.
July 2008 sales volume in the Bay Area was up 5.7% over
the previous month… but still shy of the average volume
for this time of year, down by 22% from the past year average.
• Foreclosure sales made up 33% of the properties sold in
July ‘08 in the Bay Area, up 29.9% from June 2007.
• Eight Marin zip codes showed an increase in sales volume
while 6 showed a decrease in volume. Seven zip
codes showed an increase in price per square foot, six
showed a decrease. A few more offered no data.
• Median home prices across the whole Bay Area, including
inland areas such as Solano County (which has been
harder hit than Marin), did push home prices down to the
lowest median price since June and July of 2007, a drop of
29.3%. But in Marin the drop was 13.2%. Only San Francisco,
with a drop of 6.3%, was lower.

Compare the above to 2007 annual numbers that showed
seven Marin zip codes dropping in value (and the highest
drop at 8.8% in Inverness), while nine zip codes went up
in value for the year. I suspect that the end result of the
housing crisis for the majority of Marin will be that home
values were fairly flat from 2005-2008, and in some areas
farther north and west (like Inverness) there will be a net
drop in price for the same period. When one considers that
in previous years there was double digit appreciation, the
slow down means that on average growth was in the 4-7%
a year on average… which isn’t that bad at all! Perspective
is key these days and I hope this helps inform yours.