California home sales fell 4.2 percent in June compared with the same period a year ago, while the median price of an existing home rose 13.6 percent, according to the latest the California Association of REALTORS® sales and price report.
Closed sales of existing, single-family homes totaled 492,800, down 11.1 percent from May, but the statewide median price of an existing, single-family detached home in June was $311,950, a 13.6 percent increase from June 2009, C.A.R. reported. The median number of days it took to sell a single-family home in California was 43.3 days in June 2010, compared with 44.3 days for the same period a year ago.
Realtors say they expected the sales pace to slow with the end of the federal home buyer tax credit. The National Association of REALTORS® also has reported nationwide home sales dropped 5.1 percent in June.
Sales in the high-end market has picked up. "We're also seeing an increase in home sales at the higher-end of the market, a reflection of the slight thaw in jumbo financing, although there still is a long way to go before jumbo loans are readily available to qualified buyers," said Leslie Appleton-Young, C.A.R. vice president and chief economist.
This is good news for high-priced areas like Silicon Valley and it's reflected in the median price rising, according to Jeff Bell, president of the Silicon Valley Association of REALTORS® . C.A.R. reports in the Santa Clara region, sales were down 8 percent from the previous year and down 10.5 percent from May, but the median price for a single-family home rose 15.1 percent from June of 2009. The June 2010 median of $633,000 is 27 percent below the peak price of $868,410 in April 2007.The median price bottomed in the region in February 2009 at $445,000.
Bell, who is a REALTOR® with Coldwell Banker in Cupertino, stressed market conditions vary, depending on location. "Most of the media is reporting on the housing market on a national basis. Remember, real estate is local and Silicon Valley is faring much better than the national average," Bell said.
In Santa Clara County, the cities of Los Altos had a June median home price of $1,618,500; Saratoga, $1,425,000; Palo Alto, $1,308,500; Los Gatos, $1,045,000; and Cupertino, $980,000. These cities were among the top 10 with the highest median home prices statewide in June.
"With home prices still substantially below their peaks and interest rates at historic lows, it's still a very affordable time for buyers to purchase a home," Bell said.
Thirty-year fixed-mortgage interest rates averaged 4.74 percent during June 2010, compared with 5.42 percent in June 2009, according to Freddie Mac. Adjustable-mortgage interest rates averaged 3.86 percent in June 2010, compared with 4.93 percent in June 2009.
The federal home buyer tax credit is no longer available, but a state credit of as much as $10,000, which began May 1, is available to buyers on a first-come, first-served basis based on the state's budgeted amount.
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.