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California July Median Price Increased 10.4 percent, Even While Home Sales Decreased 20.8 Percent

Tuesday, September 7, 2010

California home sales expectedly decreased 20.8 percent in July compared with the same period a year ago, yet due to strong sales on the upper end of the market, the median price of an existing home rose 10.4 percent from July 2009, according to the latest report from the California Association of REALTORS® (C.A.R.). With interest rates still at historic lows and prices substantially below their peaks, REALTOR® officials note it is still a favorable time for buyers.

Closed escrow sales of existing, single-family detached homes in California totaled 440,370 in July, according to the C.A.R. report. Statewide home resale activity decreased 20.8 percent from the sales pace recorded in July 2009 and down 10.9 percent compared with the previous month.

The year-over-year statewide median home price posted its ninth consecutive gain and seventh consecutive double-digit gain in July. The median price of an existing, single-family detached home during July 2010 was $314,850, a 10.4 percent increase from the $285,310 median for July 2009. The July 2010 median price was up 0.9 percent compared with June's $311,950 median price.

In Santa Clara County, July closed escrow sales of existing, single-family detached homes decreased 8.4 percent from the previous month and were down 18.5 percent from July 2009. The median price of an existing, single-family detached home during July 2010 was $630,000, down 0.5 percent from $633,000 in June, and up 7.3 percent from $587,000 in July 2009.

"There are more opportunities for home buyers than there has been in decades. This is still a very affordable time for first-time home buyers to purchase a home and for homeowners who wish to move up. Even if the federal tax credits are no longer available, home prices in our area are substantially below their peaks and interest rates remain at historic lows," said Jeff Bell, president of the Silicon Valley Association of REALTORS®.

C.A.R. reports the Santa Clara County July median price of $630,000 is 27.5 percent below the peak price of $868,410 in April of 2007. The median price has increased 41.6 percent from the trough of $445,000 in February 2009.

Thirty-year fixed-mortgage interest rates averaged 4.56 percent during July 2010, compared with 5.22 percent in July 2009, according to Freddie Mac. Adjustable-mortgage interest rates averaged 3.73 percent in July 2010, compared with 4.82 percent in July 2009.

Bell reminds consumers that real estate is local. "The Silicon Valley neighborhoods of Los Altos, Saratoga, Palo Alto, Los Gatos and Cupertino continue to rank among the top cities with the highest median home prices in the state because of their location," Bell said.

Statewide, the 10 cities with the highest median home prices in California during July 2010 were: Beverly Hills, $1,677,500; Los Altos, $1,560,000; Saratoga, $1,490,000; Manhattan Beach, $1,490,000; Palo Alto, $1,317,500; Palos Verdes Estates, $1,200,000; Newport Beach, $1,187,000; Los Gatos, $1,147,500; Mill Valley, $972000; Rancho Palos Verdes, $920,000; Santa Monica, $920,000; and Cupertino, $885,000.

C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in July 2010 rose to 5.8 months, compared with four months in July 2009. 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 44.2 days in July 2010, compared with 39.9 days 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.

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