Manteca’s resale housing market is on pace for a record setting fourth straight year of 1,050-plus transactions.
Deals have closed on 216 existing homes this year as of March 16 with 2.88 homes being sold each day. At that pace, 1,051 existing homes will sell by Dec. 31.
The Manteca market saw 1,193 homes sell in 2010, 1,211 homes in 2009, and 1,165 homes in 2008. Those numbers compare to 402 homes in 2007.
“We’re seeing some progress in the market,” noted carol Bragan of Bragan Real Estate.
One encouraging sign was a buyer who was purchasing a home for $190,000 but the appraisal came back at $211,000.
“That’s an encouraging sign,” Bragan said. “Appraisers have been extremely conservative due to the market.”
A slightly more robust approach to home buyers is also reflected in pending sales where the 183 homes in contract have a median pending price of $195,000. That compares to the median price of $173,500 for the 216 homes sold so far in 2011. The median price of homes selling in 2010 was $185,000, in 2009 it was $185,000 and in 2009 it was $178.000. That compares to $345,000 in 2007.
Realtors generally agree housing in decent shape at the lower end of the market has already started to rebound slightly but the price drops are still continuing to a degree in the larger homes. Exceptions are two-bedroom, one-bathroom homes and three bedroom, one-bathroom homes that continue to suffer from weak demand due to the most popular floor plans - three bedrooms and two bathrooms as well as four bedrooms and two bathrooms - that are older being priced to the point they are considered at the highest level of affordability in at least 30 years.
The best barometer of the “bottom” of the low end of the market is the Cherry Lane condos. No category of housing in Manteca has dropped farther in value since 2006 than the conversion of the apartment complex at Union Road and Cherry Lane six years ago to create what was touted as Manteca’s most affordable housing.
At the height of the housing bubble in early 2006, the 941- and 944-square-foot units peaked at $220,000.
A 944-square-foot unit closed escrow on Jan. 21, 2010 for $44,900. That represented a 78.6 percent plunge in value over four years compared to the median value of overall resale homes that dropped 57 percent over the same time period going from $413,000 to $178,000. A 941-square-foot unit eight days later on Jan. 29, 2010 closed escrow for $46,200.
The values of the condo have dropped steadily over the past 53 months. They also have gotten to the point FHA loans were no longer possible because of the number of investor-owned units. That makes them essentially a 100 percent market transaction unaffected by government subsidized loans.
The downward plunge for the condo project seems to have ended.
Two deals recorded in October saw a 944-square-foot unit selling for $56,000 and a 914-square-foot unit closing escrow for $58,000. Another $58,000 sale was recorded on Feb. 11, 2011 of another 944-square-foot unit.
That is an upward bounce of $11,800.
At the same time there are two Cherry Lane condos available as short sales at $49,900 apiece.
Deals have closed on 216 existing homes this year as of March 16 with 2.88 homes being sold each day. At that pace, 1,051 existing homes will sell by Dec. 31.
The Manteca market saw 1,193 homes sell in 2010, 1,211 homes in 2009, and 1,165 homes in 2008. Those numbers compare to 402 homes in 2007.
“We’re seeing some progress in the market,” noted carol Bragan of Bragan Real Estate.
One encouraging sign was a buyer who was purchasing a home for $190,000 but the appraisal came back at $211,000.
“That’s an encouraging sign,” Bragan said. “Appraisers have been extremely conservative due to the market.”
A slightly more robust approach to home buyers is also reflected in pending sales where the 183 homes in contract have a median pending price of $195,000. That compares to the median price of $173,500 for the 216 homes sold so far in 2011. The median price of homes selling in 2010 was $185,000, in 2009 it was $185,000 and in 2009 it was $178.000. That compares to $345,000 in 2007.
Realtors generally agree housing in decent shape at the lower end of the market has already started to rebound slightly but the price drops are still continuing to a degree in the larger homes. Exceptions are two-bedroom, one-bathroom homes and three bedroom, one-bathroom homes that continue to suffer from weak demand due to the most popular floor plans - three bedrooms and two bathrooms as well as four bedrooms and two bathrooms - that are older being priced to the point they are considered at the highest level of affordability in at least 30 years.
The best barometer of the “bottom” of the low end of the market is the Cherry Lane condos. No category of housing in Manteca has dropped farther in value since 2006 than the conversion of the apartment complex at Union Road and Cherry Lane six years ago to create what was touted as Manteca’s most affordable housing.
At the height of the housing bubble in early 2006, the 941- and 944-square-foot units peaked at $220,000.
A 944-square-foot unit closed escrow on Jan. 21, 2010 for $44,900. That represented a 78.6 percent plunge in value over four years compared to the median value of overall resale homes that dropped 57 percent over the same time period going from $413,000 to $178,000. A 941-square-foot unit eight days later on Jan. 29, 2010 closed escrow for $46,200.
The values of the condo have dropped steadily over the past 53 months. They also have gotten to the point FHA loans were no longer possible because of the number of investor-owned units. That makes them essentially a 100 percent market transaction unaffected by government subsidized loans.
The downward plunge for the condo project seems to have ended.
Two deals recorded in October saw a 944-square-foot unit selling for $56,000 and a 914-square-foot unit closing escrow for $58,000. Another $58,000 sale was recorded on Feb. 11, 2011 of another 944-square-foot unit.
That is an upward bounce of $11,800.
At the same time there are two Cherry Lane condos available as short sales at $49,900 apiece.
