Monday, May 24, 2010

Solano area's home prices rebound a bit

Home prices in Solano County are rising and will continue to for the next year, according to the latest report by an industry analysis firm. National home prices, including distressed sales, increased nearly 2 percent in March compared to a year ago, according to CoreLogic's Home Price Index. In the Vallejo-Fairfield area, the CoreLogic index report reveals home prices, including distressed sales, increased by .24 percent in March compared to last March. This compares to February's -3.68 percent year-over-year index.

Compared to last April, Solano County home prices were up 14 percent last month. Those were led by Vallejo, where prices rose 28 percent and Suisun, where they were up 15 percent…. But Vallejo experienced a 28 percent drop in sales volume last month -- from 198 in March to 143 in April, making last month the second strongest so far this year, Herman said. He and Willis said they chalk this, and last month's 17 percent drop in sales countywide, to a lack of available inventory. The Vallejo market, for instance, went from a glut of more than 1,200 available houses at the peak of the foreclosure crisis, to maybe a couple hundred now.

"I think what the market needs is more inventory countywide," Willis said. "I'm not saying we need 1,200 homes on the market, but a few hundred more would help stabilize things." Willis said he suspects there are still vacant properties out there, and expects more inventory to hit the market in coming months. "I expect a new wave of short sale properties, with new rules for banks outlined in the new federal Home Affordable Foreclosure Alternatives Mortgage (HAFA) Program".