Home Sales in the East Bay took a turn for the worst in November. DataQuick Information Systems issued a report showing that Bay Area Home Sales were down on average 36% with Contra Costa County showing a decrease of 46% from previous November 2006 total home sales. Median sales prices also dropped in Contra Costa County of 6.9 percent.
Source: DataQuick Information Systems, www.DQNews.com
Bay Area home sales stuck at two-decade low; price picture mixed
The Bay Area's housing market remained in a bit of deep freeze in November, when sluggish demand kept sales at a two-decade low for the third straight month. Prices continued to hold up best in the region's core markets, while some outlying areas posted more double-digit annual declines, a real estate information service reported.
East Bay Business Times Reports
Mortgage crisis front and center: Biggest risk for economy is real estate
The housing market dominated economic and financial headlines in 2007, and is expected to be a major driver next year as well.
"Housing is front and center, and a major risk factor going forward," said Scott Anderson, a senior economist at Wells Fargo & Co. who puts the chances of California entering a short, shallow recession at almost 50 percent.
Business spending generally follows consumer spending, Thornberg said, so a slowdown in consumer spending will typically be followed several months later by a slowdown in business spending. He will be watching to see if there are dramatic decreases in business spending in the second and third quarters of 2008.
Anderson at Wells sees a potential slowdown in commercial real estate next year, which in 2007 stayed fairly strong as the residential market tanked. With banks tightening credit and scrutinizing loan portfolios, "we've seen the best days in commercial real estate," Anderson said. "Our fear is it could deteriorate more than expected."