Bay Area Real Estate Shows Signs of Improvement

SAN FRANCISCO, CA--(Marketwire - July 13, 2009) - Bay Area real estate prices have increased an average of 28% between the first and second quarters of 2009, according to a Bay Area brokerage.

McGuire Real Estate, a leading residential real estate brokerage, also reports that the quantity of single family homes that sold increased significantly, up 66% in the same time period.

"This uptick in activity is somewhat expected," said Aman Daro, Vice President of Integrated Marketing at McGuire. "We typically see an increase between the first and second quarters of the year as buyers participate in the spring buying season, but 2009's increases are larger than in past years."

In some regions, like Marin County and the Peninsula, sales more than doubled and in the Western East Bay, which includes Oakland, Emeryville, Berkeley, Piedmont and Alameda, prices increased 32% to average $391,916.

"Buyers waited longer than usual to come out of their winter hibernation," said Aldo Congi, sales manager for McGuire's Bluxome office. "We hope the buying season is just running later than usual."

When comparing second quarter performance to the same time period the year before, quantity of sales is also showing strength, up 2%. Average sale price, however, is down 29%.

But this year-over-year decline in price is slowing. "The previous two quarters' declines were nearly double that in Q2 2009," continued Mr. Daro. "We are starting to see the market as a whole even out."

The upper end of the market in each region is showing the greatest increases in activity. In three of the four Bay Area regions, more units were sold in the highest price ranges than during the previous quarter.

"The upper end of the market has traditionally kept the Bay Area market aloft, and that was the segment that was most affected by the financial crisis," said Mr. Congi. "All buyers are value-conscious right now, so it's good to see that these influential buyers are recognizing that it's a good time to get great value."

Have we hit bottom? "It's too early to tell," said Mr. Daro. "One data point does not a trend make. The market continues to fluctuate according to seasonal trends, so you can expect summer activity to decline versus the spring, but we should see another increase in the fall."

Data is sourced from San Francisco, Marin, East Bay and Peninsula Multiple Listing Services.

QUANTITY SOLD - SINGLE FAMILY HOMES
-----------------------------------
                      East Bay*  Marin   Peninsula   San Francisco   Total
                      --------   -----   ---------   -------------   -----
Q1 2008                    412     281         664             404    1761
Q2 2008                    728     494        1167             654    3043
Q3 2008                    910     492        1145             609    3156
Q4 2008                    909     304         912             474    2599
Q1 2009                    816     222         514             325    1877
Q2 2009                   1043     439        1098             531    3111
% Diff vs. 1QA            27.8%   97.7%      113.6%           63.4%   65.7%
% Diff vs 1YA             43.3%  -11.1%       -5.9%          -18.8%    2.2%

AVERAGE SALE PRICE - SINGLE FAMILY HOMES
----------------------------------------
                 East Bay*      Marin   Peninsula  San Francisco      Total
                 --------       -----   ---------  -------------      -----
Q1 2008          $637,300  $1,321,868  $1,336,503    $1,176,676  $1,133,687
Q2 2008          $653,441  $1,373,576  $1,229,899    $1,244,666  $1,118,647
Q3 2008          $562,113  $1,230,880  $1,064,894    $1,105,784    $953,743
Q4 2008          $435,081  $1,111,639    $859,333      $924,107    $752,194
Q1 2009          $297,808    $948,303    $821,794      $882,971    $619,230
Q2 2009          $391,916    $985,525    $989,064    $1,017,024    $792,947
% Diff vs. 1QA      31.6%        3.9%       20.4%         15.2%       28.1%
% Diff vs 1YA      -40.0%      -28.3%      -19.6%        -18.3%      -29.1%

SOURCE: Multiple Listing Service
* Alameda, Berkeley, Emeryville, Oakland and Piedmont

ABOUT McGUIRE REAL ESTATE

McGuire Real Estate, founded in 1919, has been a market leader in luxury home sales in the Bay Area for 90 years. A mid-sized, regional boutique, McGuire specializes in luxury real estate but applies the highest standards of service to properties in every price range, and to every client. Its "customer first" philosophy and local focus have proved to be a winning formula for this Bay Area real estate leader. McGuire's affiliation with Luxury Portfolio successfully connects McGuire's clients and agents to a worldwide marketplace. McGuire employs over 200 agents and operates three offices in San Francisco, three offices in Marin County, one in Burlingame serving the Peninsula, and one in Rockridge serving the East Bay.

Contact Information: Contact: Alex Buehlmann McGuire Real Estate (415) 296-1000