Livermore Detached Home Market Reports, November 2011

The median price has gone down 9% over the previous month, but what's more troubling is that November reflects the lowest median price this year, outside of January. We don't get data about who buys homes in any given month in our MLS, but I would hazard a guess that fewer families (who typically buy larger homes) are buying now, and that the market has a higher proportion of first time buyers, renters and investors, where the purchase price of focus is a little less.

Supply down, demand up is usually a good thing for pricing. But interesting how the 9% rise in demand and the reduction of inventory has not had a positive effect on the median price.

This is a huge change. Average days on market has dropped from 48 to 34 for detached homes. That is in part due to lower inventory levels, but also can be attributed to improved bank processes for short sales.

Inventory levels were lower than normal last November, but have dipped down even more this year. The loss of equity has kept many sellers in place, postponing a move until prices are more favorable. When will that be? So far, predictions by economists have been far from optimistic.