REALTOR® officials say California's housing market is slowly recovering, but stress for the market to fully recover, lenders need to improve the short sales process.
Data from the California Association of REALTORS® (C.A.R.) shows home sales in the state rose in November, though sales were down from the same time last year. Closed escrow sales of existing, single-family detached homes in California totaled 490,950 in November, up 9.2 percent from October's revised pace of 449,480, but down 8.6 percent from November 2009 sales.
C.A.R. President Beth L. Peerce said a more sustained recovery is being hampered by the distressed market. "While we are experiencing a greater share of short sales, these transactions are notoriously difficult to navigate with no guarantee of closure," she said.
Peerce said a recent C.A.R. survey indicated it takes many lenders 90 days or more simply to communicate whether a short sale has been accepted, causing tremendous frustration for buyers and sellers. The survey found that more than two out of five short sale transactions never close.
"The housing market can't fully recover until lenders streamline and improve the short sales process, which would help expedite transactions," said Peerce.
The median price of an existing, single-family detached home sold in California in November fell below the $300,000 mark for the first time since February. November's median price was $296,820, down 2.4 percent from October's median price of $304,220 and down 2.5 percent from the revised $304,550 median price for November 2009.
C.A.R. Vice President and Chief Economist Leslie Appleton-Young attributed the median price decline a drop in unsold inventory, particularly for upper-end homes priced above $500,000 "The decline in listings was reflective of seasonal factors and the foreclosure moratorium that took place in October," Appleton-Young explained.
In Santa Clara County, C.A.R. reported home sales in November increased 6 percent from the prior month, but were down 8.6 percent from November 2009, when home buyers were still taking advantage of the home buyer tax credit. The median price of a single-family detached Santa Clara County home was $589,980, down 7.5 percent from October and down 2.5 percent from November 2009.
"Recovery is taking place, but where you are will determine its pace," said Gene Lentz, 2011 president of the Silicon Valley Association of REALTORS®.
In a message to members of the local trade association, Lentz, who is a REALTOR® with Red Hawk Real Estate in Menlo Park, said, "Our region is truly a remarkable marketplace where, for sure, things have slowed somewhat, even with some market adjustments of perhaps 10 to12 percent, maybe even 20 percent from the top of the market. But, our colleagues from other parts of the state report areas in which perhaps 80 percent of their sales are distressed properties. There is one thing of which we can be absolutely certain: we have a great market to deal with here."
C.A.R. reports the 10 cities with the highest median home prices in California during November 2010 were: Saratoga, $1,235,000; Newport Beach, $1,110,000; Laguna Beach, $1,107,500; La Jolla, $1,037,500; Los Gatos, $850,000; Cupertino, $850,000; Santa Monica, $849,000; Santa Barbara, $839,000; Danville, $720,000; San Francisco, $680,000; and Arcadia, $670,000.
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.