Now that the local and national elections are over, we can put that in our rear-view mirror and move on. The real estate market is proof in the pudding that our economy is on the uptick throughout the country. Davis, California real estate certainly falls into that recovery category. A high percentage of towns and cities that were hit hardest by the market crash are now experiencing an increase in housing prices and home sales. Davis is unique for a number of reasons when you consider home prices are double that of our neighboring communities. We were somewhat insulated from the huge loss in appreciation that most locales went through.
The Davis housing market had actually started showing signs even before this year of some stability. From 2009-2011, property values and the number of homes sold were steady and stable. For 2012 the number of sold properties were up compared to 2011 by over 20%. During that same window, the property values slightly dropped by 5%. We should not be alarmed by the meager decrease in home prices, they can easily be explained. More investors and first time home buyers filtered back into the market. They make up a large segment of buyers and neither are looking at the more expensive home. This will naturally bring down the average sales prices.
Comparing numbers over the last two years will show why there is so much optimism among everyone involved with real estate. For the month of October this year we had 30 properties that sold, of those homes the average sales price was $527,070 and the average square footage was 2,177. During the same month in 2011, there were 19 homes sold with an average sales price of $419,242 and the square footage was 1,652. The higher sales price can be attributed to a larger amount of repeat buyers ( owners of homes prior) buying up and purchasing more expensive properties.
For the first 10 months of 2012, we have had 426 homes sold with an average sales price $452,274 and the square footage was 1,777. During the same period in 2011, there were 331 homes sold that averaged 1,817 square feet and sold for $477,321. We are teetering on a decent recovery, assuming interest rates stay respectable and home buyers and sellers regain confidence that our elected officials can create a full-blown economic recovery.
The Davis Water Advisory should be making a decision soon on a rate structure that hopefully will be the fairest way to bill its residents for water. The $116 million surface water project will be available for a March 2013 public vote on the project. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.