SILVAR  :  Newsroom  : Real Estate Articles

Real Estate Articles

REALTOR®: California Home Sales Down 29.8 Percent, Median Home Price Falls 21.9 Percent

Silicon Valley region housing market stays healthy.

Wednesday, March 5, 2008

The California Association of REALTORS® reports home sales in the state decreased 29.8 percent in January compared with the same period a year ago, while the median price of an existing home was down 21.9 percent. The Silicon Valley housing market, however, continues to hold its own, with median home price increases, better inventory and less days on market for homes for sale in many communities.

"This most recent decrease in the median price is yet another result of the liquidity crunch, which has choked off sales in recent months for nearly half of California's housing market," said C.A.R. President William E. Brown. "Sales do appear to be edging up, but recent declines in the median price have been due to a lack of sales in the over $500,000 range, where funds are extremely scarce and jumbo loan rates are at near-record margins compared to conforming loan rates."

Closed escrow sales of existing, single-family detached homes in California totaled 313,580 in January at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local Realtor associations statewide. Statewide home resale activity decreased 29.8 percent from the 446,820 sales pace recorded in January 2007.

The median price of an existing, single-family detached home in California during January 2008 was $430,370, a 21.9 percent decrease from the $551,220 median for January 2007, C.A.R. reported. The January 2008 median price fell 9.7 percent compared with December's revised $476,380 median price.
Santa Clara County's median price for all homes – new and existing, condos and single family - was down 5.2 percent. The median home price was $634,250 in January 2008, from $669,000 in January 2007. Yet there is a portion of the county that continues to have a healthy picture. According to January 2008 figures from MLSListings Inc., the multiple listing service of the Silicon Valley Association of Realtors, with the exception of Saratoga, the median sales price of single family homes in all communities in the association's districts (Palo Alto, Los Gatos/Saratoga, Los Altos/Mountain, Cupertino/Sunnyvale) was up from the previous year. The median sales price for a single family home in Saratoga dropped slightly from $1,760,000 in January 2007 to $1,486,500 in January 2007. The median sales price in Los Gatos jumped from $1,600,000 in January 2007 to $1,712,500 in January of this year. Inventory for both single family homes and condos was up in all communities, except Cupertino and Palo Alto (down in single family homes).

The Silicon Valley region figures are also brighter than the statewide figures with regard to average days on market. Compared with the same period last year, average days on market dropped in Los Altos (23 in January 2008 from 50 in January 2007), Los Gatos (26 from 52), Palo Alto (15 from 49), Sunnyvale (30 from 35).

The C.A.R. Unsold Inventory Index for existing, single-family detached homes in January 2008 was 16.8 months, compared with 7.6 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate. The median number of days it took to sell a single-family home was 71.6 days in January 2008, compared with 68.7 for the same period a year ago.


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