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REALTOR®: C.A.R. Reports Homes Sales Up

Wednesday, September 3, 2008

California home sales jumped 43.4 percent in July compared to the same period in 2007, the California Association of REALTORS® (C.A.R.) reported this month.  The increase in sales is countered by the falling median price of an existing home, which declined 40.3 percent statewide.

"Sales improved significantly in July 2008 and remained above the 400,000 level for the third consecutive month," said C.A.R. President William E. Brown.  "Deeply-discounted, distressed sales continue to drive volume in many regions of the state."

Statewide home resale activity grew 43.4 percent from the revised 341,130 sales pace recorded in July 2007, according to C.A.R.  Sales in July 2008 increased 15.3 percent compared to the figures in June.

The increase of sales is noted by the quickening rate of homes going off the market. The median number of days it took to sell a single-family home was 47.5 days in July 2008, down from 50.7 days in July 2007, the report stated.

California's median price of an existing, single-family detached home decreased 40.3 percent, standing at $350,760 in July 2008 from the revised $587,560 median for July 2007, C.A.R. reported. June's revised median price of $367,130 was 4.5 percent higher than that of July.

"The 40.3 percent year-to-year decrease in the median price of a home was an all-time record, surpassing the previous record set in June with a 37.9 percent decrease," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.

According to the DataQuick Information Systems, the median selling price of a home in Santa Clara County was $592,750 in July, a 17 percent decline from the median price of $714,000 in July 2007.    

"Large decreases in the median are largely due to the dramatic change in the mix of sales since the onset of the credit/liquidity crunch and the increase in the share of distressed sales," said Leannah Hunt, president of the Silicon Valley Association of REALTORS®.

The DataQuick Information Systems showed declines. In Gilroy, the median price of a home dropped 33.7 percent this past July from the median price of $652,500 in the same period a year ago. San Jose experienced a 20.9 percent decline, with the July 2007 median of $665,000 declining to the July 2008 median of $526,250. Santa Clara's median price is now at $628,000, down 11.5 percent from the $709,500 median price of July 2007.

"The lowest price range has also experienced large price declines than the other market segments, contributing to the decline in the statewide median as well," Hunt said.

Not all areas of Santa Clara County are experiencing decreases. Los Gatos had a 36.6 percent jump in its median price this July, the highest increase in the county. The median price of $1,425,000 is up from the $1,043,000 median in the same period during 2007. Mountain View's median price in July 2008 was $750,000, an increase of 6.9 percent from July 2007's median price of $701,500. Cupertino experienced a modest increase of 1.1 percent, moving from $1,030,000 in July 2007 to $1,041,250 in July 2008.

Statewide, Los Gatos had the greatest median home price increase in July 2008 compared to the same period one year ago. The remaining cities with the highest median price increases were: Mill Valley, 28.6 percent; Manhattan Beach, 9 percent; Berkeley, 8.2 percent; Mountain View, 6.9 percent; and Cupertino, 1.1 percent.


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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