ALAMEDA HOME AFFORDABILITY
ALAMEDA HOME AFFORDABILITY According to the National Association of Home Builders and Wells Fargo Bank home affordability is at a 20 year high. 74.6 percent of all new and existing homes sold nationwide in the first quarter of 2011 were affordable for families earning the national median income of $64,000.
Areal View of the City of Alameda Taken from Above Ballena Bay Marina
In Alameda, the news is not as good. More homes are affordable and interest rates are still low but sales have been slow. Total sales for detached homes, condos and townhouses were down 9% from the previous quarter in 2010 (statistics from East Bay Regional Data MLS). The average price for homes sold in the first quarter dropped a bit to $538,771.
However, interest in Alameda housing is still high. One Zillow.com report rating 19 zip codes in the East Bay, showed that Alamedazip code 94501 was the second most searched for zip code. For the first quarter, 33,693 people used Zillow to research information about Alameda homes.
Alameda buyers are very reluctant to buy and they have high expectation regarding condition and price. In other words, buyers want to purchase a home which has the lowest price and is in the best condition.
In the first quarter of 2010 sold homes averaged 97% of the original price. In the first quarter of 2011 sold homes averaged 94% of the original price in Alameda.
Alameda buyers now want the best deal they can get, not surprisingly since everyone knows we are in a buyers' market. Also, not surprisingly, buyers want the homes they purchase to be in very good condition. They also want bigger homes and they want those homes to be newer construction.
Alameda homes which were less than 1,500 square feet sold for 87% of the original price. Homes that were more than 1,500 square feet sold for 96% of the original price. Additionally, home with 4 and 5 bedrooms sold in an average of 22 days, much quicker than smaller homes.
Alameda homes built after 1974 sold for 97% of the original price as opposed to homes built before 1974 which sold on the average for 90% of the original price.