January and February are usually slow months in the housing market, and the first months of 2007 were just that, though a bit stronger than last year (sales were up 14%). 20 homes, condos, and halfplexes closed escrow during January 2007 (up from 16 in January 2006), and 27 in February 2007 (up from 25 in February 2006) (note that these numbers are actually indicative of market activity in December 2006 and January 2007 when most of the sales actually went pending).

In February, the average time on market of sold properties fell to 69 days, down from a high of 96 days in December.  Housing prices using my favorite measure, median price per square foot, were $302.52 in January, then jumped markedly to $329.17 in February.  The average price per square foot also rose markedly to $329.00 in February from $307.00 in January.  On the other hand, the volatile median sale price plummeted to $450,000 in February from $506,000 in January (this is an obvious statistical aberration).  Taken as a whole, the data show that prices rose in January and February, although you can't read too much into this given the small sample sizes.

The overall inventory of homes, condos, and halfplexes in Davis rose modestly to 129 units, up from 107 at the writing of the last Newsletter, (and quite low compared to the high of about 265 units in the Spring of 2006).  Increasing inventory is a normal part of the beginning of the Spring season.

The sub-$300,000 market continues in technical "sellers' market" territory with four units on the market and three sales in the last 30 days.  Buyers are getting only small price concessions, if any, on average.

This price range has moved into a "sellers market."  There are 24 units on the market, and 10 sales in the last 30 days.  That's an inventory of 2.5 months.  Price concessions have generally been small as of late.

With 14 units on the market, and 12 pending sales in the last month, this price range has rocketed into strong "sellers market" territory with just over one months' inventory.  Price concessions are getting smaller, and we are even seeing some units sell for over the list price (possibly due to a little bidding war).

After a strong showing at year-end in this segment, there are now 29 units on the market, and 13 pending sales in the last month.  This market segment has thus moved into "sellers' market" territory.  Price concessions have been in the $10,000 range, on average.  You can still possibly get a good all-around house in the high $500,000 range, but there is no guarantee this will last.

Inventory in this price range has risen to 28 units.  There have been 7 sales in the last month, placing this market segment in a technical "neutral" territory.  But a recent surge in sales (7 so far in March) may indicate that this segment is heating-up fast.  Price concessions were all over the board.

Inventories stand at 16 listings in this price category.  With only one pending sale in last 30 days, this price range is in technical "buyers' market" territory.  This is a good time to buy in this price range, as buyers still have lots of bargaining power.  However, its hard to ignore the possibility that the strong activity in both lower and higher price segments may start to work its way into this segment.

With only 11 listings, and nine pending sales in the last 30 days, this price segment continues (for the third letter in a row) in technical "sellers' market" territory.  The inventory is now at just over one month's supply.  Price concessions have been low.  There appears to be strong demand in this price category, where you can currently get a very nice house for under $1 million.  If I were shopping in this price range, I'd probably want to get serious as soon as possible.

Inventory in this price range is now at 11 listings, and there were two pending sales in the last 30 days, placing this segment in "neutral market" territory.  However, open house traffic has been good over the last couple weeks, according to my humble observations.  It may be a good time to buy in this segment.  

With eight listings and three pending sale in the last month, the income property market has moved into technical "sellers' market" territory.  

North Davis 2/1.25 for $360,000: Great architecture, 1460 square feet, active solar system, parquet floors, North Davis location, this 2/1.25 is a steal at $360,000, or about $250/sqft.  Schedule a showing.

Aspen 2/1 for $390,000: Modern Halfplex in Aspen near wildlife pond on 4300 square feet lot. Room to add on, or have a really big garden.  Great opportunity for senior or young professor who wants top quality Davis living for under $400,000.  Schedule a showing.

Stonegate 4/2 for $425,000: Condo in Stonegate, 1800 square feet  $425,000, or about $237.00/sqft.  Great investment property.  Schedule a showing.

Willowcreek 4/3 for $550,000:  Newer 4/3, over 2000 square feet in nice South Davis neighborhood.  Could get it for around $550,000.    Great deal may go fast.  Schedule a showing.

Downtown 4/3 for $680,000:  Amazing downtown location, fully remodeled 1450 square foot home and second unit, plus detached garage, for $680,000.  4 beds, three baths.  I can't believe this one hasn't sold yet at this price.  Where have the people with taste gone?  Schedule a showing.

Northstar 4/2 for $720,000:  Great 4/2 in Northstar.  2100-plus square feet with a small pool.  Might get it for $720,000.  It's a good time to make offers in this price range.  Schedule a showing.

Central 3/2.5 for $879,000: Amazing 1900 square feet 3/2.5 on large lot in prime Central Davis location.  Very nice finishes and updates, elegant layout, large yard with pool.  Short walk downtown.  A good property at $879,000.  Schedule a showing.

Willowbank 5/3 for $925,000: Incredible property in Willowbank (one of the best neighborhoods in Davis).  5/3 with 2300 sqft. on over half an acre.  I don't understand why this hasn't sold.  It's a self-contained status symbol.  It's come down from $1,100,000 to $925,000.  Will someone with taste please step forward?  Schedule a showing.

Aspen 5/4.5 for $1,070,000:  Premier location on the West Davis wildlife pond.  3470 sqft.  Marble and hardwood floors.  Free form pool.  Balcony overlooking pond.  Or you could just live in Mace Ranch....  Schedule a showing.

Country 5/6 for $1,500,000:  If you want everything, and can afford it, there is currently a 5000-plus square foot property available on an acre just outside Davis to the North.  Amazing property in every way, as you would expect.  Schedule a showing.

Investment Property:  Prime location, about 6% gross CAP.  Excellent deal that will go fast at $1.1 million.  Schedule a showing.