Housing sales continue steep fall

Home prices took a dramatic downward turn in January across the Northern San Joaquin Valley, with the median sales price declining by more than 25 percent from a year earlier in most categories.

The median sales price for a Stanislaus County home was $260,000 last month, 26.7 percent lower than in January 2007, when the median sales price was $354,500, according to DataQuick Information Systems, a real estate research firm.

The median sales price in Merced County was $215,000, down 33.8 percent from a year earlier. And San Joaquin County's median price was $295,000, down 26.3 percent from the January 2007 price of $400,000.

Drops in median sales prices cut across almost every category, from new to resale homes and condominiums.

Many analysts think valley prices are at the same level they were in 2003 and 2004, when the regional housing market was rising.

The valley's sales price drops were among the steepest in California, rivaled only by Sacramento, where they fell 26.8 percent last month from the previous year.

The data also showed that sales volume declined in Stanislaus County by 23.9 percent last month compared with January 2007, with escrow closing on 372 homes last month.

Volume was down by 20 percent in Merced County and by 34.9 percent in San Joaquin County for the same period.

Statewide, 19,145 homes were purchased last month, a 41 percent drop from January 2007. The median home price was down 17 percent from January 2007, to $383,000.

Craig Lewis, president and chief executive officer at Prudential Realty in Modesto, said he sees reason for optimism in valley real estate for two reasons.

One, the drop in prices and interest rates means a buyer could more easily afford a median priced house, based on a 30-year fixed mortgage with a 10 percent down payment, Lewis said.

"Local people can now qualify to buy that same home," he said.

Second, he noted that pending escrows, which are not reflected in DataQuick numbers, are high at the moment, suggesting current activity that won't show up for a few months, when escrows close.

"That's why there's a turn," Lewis said.

Data on sales prices and volume for Tuolumne County were not available Friday.

Bee staff writer Ben van der Meer can be reached at bvandermeer@modbee.com or 578-2331.