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REALTORS®: Single-family home sales dip, but not condos and townhomes

Wednesday, September 18, 2013

The housing frenzy of the past few months appears to be slowing down. Buyers appear to be taking a pause for now. California Association of REALTORS® (C.A.R.) reports home sales in August were down compared to the previous month and year, though the condo/townhome market is doing very well.

Sales of existing, single-family detached homes in California in August were down 2 percent from sales in July and down 1.9 percent from August 2012 sales. Meanwhile, sales of condominiums and townhomes surged almost 8 percent from last August and are up nearly 5 percent year to date compared to last year, according to C.A.R. president Don Faught.

"The condo and townhome market has been performing exceptionally well, as rising single-family home prices and limited inventory prompted many buyers to look for a more affordable alternative," said Faught.

In Silicon Valley, MLSListings Inc. reports compared to July, August single-family home sales were down 10 percent in San Mateo County and down 4 percent in Santa Clara County. Compared to the same month last year, August sales are down 1 percent in San Mateo County, down 3 percent in Santa Clara County.

Home prices, on the other hand, continued rising in August. In many places, prices are reaching levels not seen in more than five years, according to C.A.R.  The statewide median price of an existing, single-family home reached $433,910 in August, up 1.7 percent from July's median price. This is the highest price recorded since December 2007. The August median price was 28.4 percent higher than $343,800 recorded in August 2012.

Santa Clara County home prices continued their uptrend, as well. The the median price for a single-family home in the county was $815,000 last month, 21 percent above the median of $671,250 in August 2012. The median price of a condo/townhome jumped 17 percent, from $423,000 in August 2012 to $495,000 in August 2013.

Carolyn Miller, president of the Silicon Valley Association of REALTORS®, said buyers who can't afford the single-family home are looking at condos/townhomes as an alternative and some actually prefer it. "These newly designed condo/townhomes are a very attractive alternative to the more expensive traditional single-family home. Many buyers have changed their focus from single-family homes with large yards to common interest developments with larger square footage and minimum lot size," said Miller.

C.A.R. vice president and chief economist Leslie Appleton-Young also noted that with inventory levels slowly rising, buyers are becoming more selective.  "The number of active listings across all price ranges has been rising on a month-to-month basis for the last six months and has reached the highest level since mid-2012," said Appleton-Young. "As housing supply loosens up with the seasonal slowdown, annual home price increases are expected to taper as we've observed in the last two months."

C.A.R. reports the available supply of existing, single-family detached homes for sale inched up in August to 3.1 months, up from July's Unsold Inventory Index of 2.9 months. A six- to seven-month supply is considered typical in a normal market.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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