SILVAR  :  Newsroom  : Real Estate Articles

Real Estate Articles

REALTOR®: California home sales higher in July

Wednesday, August 20, 2014

California home sales in July increased for the second straight month, while the statewide median home price rose from the previous month as well as a year ago, according to the latest report from the California Association of REALTORS® (C.A.R.).

Information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide revealed a total of 398,940 closed escrow sales of existing, single-family detached homes in California in the month of July, up 1.2 percent from a revised 394,250 units in June. Sales were down 10 percent from a revised 443,500 units in July 2013. The July 2014 sales rate was the highest since October 2013, according to C.A.R.

"It's encouraging that home sales have risen in the past two months, but low housing affordability and stringent underwriting standards are still holding back sales," said C.A.R. president Kevin Brown.

The statewide median price of an existing, single-family detached home was $464,750, up 1.6 percent from June's median of $457,630 and 7.1 percent higher than the revised median of $433,740 in July last year. The statewide median home price has increased year over year for the previous 29 months.

"Last July's sales level was higher than normal as sales increased in response to rising interest rates as the markets anticipated the Fed's 'tapering' initiative," explained C.A.R. vice president and chief economist Leslie Appleton-Young. "Moving forward, improving inventory, recent lower interest rates, and a tempering of home prices should help spur sales in the coming months."

Santa Clara County sales of single-family homes posted a 3.5 percent gain from the previous month, but sales were down 1.7 percent from July 2013. The July median price of an existing single-family home was $860,500, down 4.4 percent from June's median of $900,000 and 2.4 percent above the July 2013 median of $840,000.

In San Mateo County home sales were up 3.9 percent from June and down 1.6 percent from July 2013. The median sales price of $1,108,000 was down 1.1 percent from the June median of $1,120,000, but a whopping 20.6 percent above the July 2013 median of $919,000.

"Silicon Valley still has the highest home prices in the state, though we are seeing prices rising at a slower pace. It's a sign that the market is still in transition and stabilizing. More inventory and the continuation of lower interest rates would make for an even healthier marketplace," said David Tonna, president of the Silicon Valley Association of REALTORS® (SILVAR).

Mortgage rates dipped in July, with the 30-year, fixed-mortgage interest rate averaging 4.13 percent, down from 4.16 percent in June and down from 4.37 percent in July 2013, according to Freddie Mac. Adjustable-mortgage interest rates in July averaged 2.39 percent, down from 2.40 percent in June and down from 2.66 percent in July 2013.


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.

» Back to Real Estate Articles

Site Navigation