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REALTOR®: California sales down 25 percent in May, while median price continues to rise from a year agoWednesday, June 27, 2007
Home sales decreased 25 percent in May in California compared with the same period a year ago, while the median price of an existing home increased 4.8 percent, the California Association of REALTORS® (C.A.R.) reported last week. Closed escrow sales of existing, single-family detached homes in California totaled 366,370 in May, down from the 488,260 sales pace recorded in May 2006. The median price of an existing, single-family detached home during May 2007 was $591,180, a 4.8 percent increase over the revised $563,860 median for May 2006. The May 2007 median price decreased 1.1 percent compared with April’s revised $597,640 median price. According to C.A.R. Vice President and Chief Economist Leslie Appleton-Young, “The decline in sales continues to be driven by both tighter underwriting standards since the start of the year and the adverse psychological impact of news regarding foreclosures and the subprime situation. In particular, the lower end of the market – which is the part of the market that is most affected by the subprime situation – has seen greater declines in sales and weaker prices than the higher end of the market.” In a recent radio interview, Appleton-Young said places like the Bay Area market continue to display lots of activity. The median price for all homes in Santa Clara County – new and existing, condos and single-family – was $720,000 in May of 2007, up 4.9 percent from the same time last year. “In this area, there is never a bad time to buy a house if you intend to purchase it for the long-term and use it as your personal residence,” said Tripp. Tripp remarked the rise in median price in Santa Clara County mirrors that of the state because it is the middle to upper-end homes that are also selling. “Buyers and sellers in this category have much more discretionary income, and are less affected by the change in market conditions,” he explained. “People selling homes have less concern for the net profit they are getting from selling their homes because of the appreciation they have received in the past years, so they can afford to sell for less.” “In the lower priced homes, both buyers and sellers are in a tighter economic situation,” Tripp said. “Stricter loan requirements are keeping out many first-time home buyers and sellers can’t lower their prices because they have less cushion. Those who bought these homes on no down payment or zero interest loans are seeing their mortgages start to adjust.” “Home buyers and sellers should do reasonable research about the local market area and talk to a professional Realtor who can explain the market and can give them good advice to meet their needs,” suggested Tripp. To find a Realtor in your area, visit www.silvar.org. 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, e-mail , or phone (408) 200-0109. |
