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REALTOR®: State REALTOR® Group Reports California Home Sales and Median Home Price Increased in December

Median home price largest year-to-year increase in more than three years.

Wednesday, January 27, 2010

Home sales in the state of California increased 1.7 percent in December compared with the same period a year ago, while the median price of an existing home rose 8.4 percent, according to the latest California Association of REALTORS® report. Cities in Silicon Valley continue to rank among the top with the highest median home price.

"Home sales in December were strong, and were comparable to sales of late 2008," said C.A.R. President Steve Goddard. "Activity in December can be attributed in part to the extension and expansion of the home buyer tax credit, as well as near-historic highs in affordability due to current price levels and low interest rates.

"For the second consecutive month, California's median home price rose year-to-year in December, and had the largest year-to-year increase in more than three years," said Goddard. "The state's median price also remained above $300,000 for the second straight month."

Closed escrow sales of existing, single-family detached homes in California totaled 558,320 in December 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 increased 1.7 percent from the revised 549,190 sales pace recorded in December 2008. Sales in December 2009 increased 4 percent compared with the previous month.

The median price of an existing, single-family detached home in California during December 2009 was $306,820, up 8.4 percent from the revised $283,060 median for December 2008, according to the C.A.R. report. The December 2009 median price rose 0.8 percent compared with November's $304,520 median price.

"Home sales were unusually strong in December and were more consistent with peak season trends," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Historically, the median price declines November through February and then rises in March. However, lean inventory, historically low interest rates, and incentives for home buyers have resulted in California's housing market experiencing non-seasonal variations.

C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in December 2009 was 3.8 months, compared with 5.6 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.

In the Silicon Valley region, Los Altos, Palo Alto and Los Gatos ranked among the top 10 cities with the highest median prices in the state during December 2009. The cities with their highest median home prices in December were: Beverly Hills, $1,400,000; Los Altos, $1,340,000; Laguna Beach, $1,230,000; Manhattan Beach, $1,165,000; Palos Verdes Estates, $1,160,000; Palo Alto, $1,066,000; Los Gatos, $994,500; Newport Beach, $938,500; Rancho Palos Verdes, $900,000; and Santa Monica, $852,500.

"We are fortunate to continue to have a healthy market in the Silicon Valley region," said Silicon Valley Association of REALTORS® President Jeff Bell. "Our region has a highly educated work force. No region can match Silicon Valley's large concentration of high-tech companies. The region is beautiful with its mountains, close to the ocean, its access to the freeways, the arts and entertainment. We have some of the best weather in the country and excellent school districts. We continue to have a strong demand for homes in the area."

Bell said projections for the region are enhanced by the tax credit expansion to more home buyers through the middle of 2010. "We are hopeful about the impact of the expanded tax credit because it will stabilize home prices as qualified buyers continue to absorb inventory this year. Mortgage interest rates continue to be the lowest in years and housing affordability has greatly improved," Bell said.

Thirty-year fixed-mortgage interest rates averaged 4.93 percent during December 2009, compared with 5.29 percent in December 2008, according to Freddie Mac. Adjustable-mortgage interest rates averaged 4.31 percent in December 2009, compared with 4.97 percent in December 2008.



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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