Friday, January 26, 2007

Price per square foot plummets!

According to the current numbers maintained by Kern the price per square foot in Kern County is now down to $169.00.

This takes the price per square foot back to the levels of Summer 2005. That is a lot of equity that has vanished! Also, the price per square foot has now declined in 5 of the last 7 months. I spot a trend and this trend is not your friend.

For all those locals who are claiming that we have reached a "permanent plateau" look no further than the chart of land prices in land strapped Japan!

The link to their website will take you to a chart of prices from July 1994 to January 2007. Here is an important note they make on their website:

"While average home price is an interesting barometer, price per square foot is more accurate in determining sales trends."


RE Bear said...

NJ recently approved CSBS/AARMR guidelines but the approval does not show up on ...

CSBS impementation

question - Have similar guidelines been approved by FL and CA?

AnalysisGuy said...

Crispy Cole is exactly right! Price per square foot is the best barometer because NAR prices do not account for the differences - especially the improvements - in homes. The biggest difference is that new houses have grown much larger, to an average of about 2,400 square feet from 1,500 in 1970.

To be more accurate, you have to see what the same houses sell for at different times. Hence the OFHEO and Case-Shiller indexes which compare same-home sales, but do not account for investment in a home, say a big remodeling

Perfect Storm said...

Price per a square foot in higher end homes in Sacramento are getting close to $150.00. This market is going from bad to worse with a bullet.

Anonymous said...

"MarketWatch Slams David 'Paid Shill' Lereah"

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