SILVAR  :  Newsroom  : Real Estate Articles

Real Estate Articles

REALTOR®: Bay Area continues to wrestle with shortage of inventory, fewer listings

Wednesday, March 6, 2013

The median home sale price continues to rise by double-digits in the Bay Area, but the shortage of inventory and fewer new listings continue to plague the market.

According to data provided by MLSListings Inc., the multiple listing service provider of the Silicon Valley Association of REALTORS®, the January 2013 median price for a single-family home in Santa Clara County was $660,000, up 35 percent from $490,000 in January 2012. San Mateo County's January 2013 median price of $695,000 was up 20 percent from $580,000 in January 2012.

As prices rise, year-over-year single-family inventory continues its drop from January 2012 levels. In fact, inventory levels for both Santa Clara and San Mateo counties were down more than 50 percent compared to the same month last year, for the second month in a row. Month-over-month inventory is up 4 percent in Santa Clara County and down just 1 percent in San Mateo County.

"It is getting to be a very serious problem," said Carolyn Miller, president of the Silicon Valley Association of REALTORS®. "People want to buy, but where are the homes?"

Home sales were mixed in January. MLSListings reports year-over-year home sales in San Mateo County were up 5 percent, but they were down 11 percent in Santa Clara County.

New listings in January 2013 fell sharply across the board in the South Bay counties compared to the same time last year - down 15 percent in Monterey County to a low of 34 percent in Santa Cruz County. Santa Clara County saw a drop of 28 percent in new listings, while San Mateo County listings were down 24 percent.

Miller is hoping listings will rise in the spring, the traditional buying season. Month-over-month comparisons show new listings were up in all counties ranging from 55 percent in Santa Cruz County to a high of 76 percent in Santa Clara County.

"There is typically a housing market slowdown during the winter months, especially in December and January. With listings up in January compared to December and month-over-month inventory up about 4 percent, we're hoping the momentum will continue and get stronger as we hit the spring season," said Miller.

The California Association of REALTORS® reports similar housing indicators statewide for the month of January. California home sales in January were down 3.9 percent from January 2012. The statewide median price of an existing, single-family detached home was $337,040 , up 24 percent from $271,490 recorded in January 2012, marking the 11th consecutive month of annual price increases and the seventh consecutive month of double-digit annual gains. The median number of days it took to sell a single-family home dropped to 36.6 days in January, down from 59.6 days for the same period a year ago.

Investors still make up a large share of buyers in the Bay Area. Real estate information service DataQuick reports last month absentee buyers – mostly investors – purchased 26.7 percent of all Bay Area homes, considered an all-time high since the real estate information service began tracking these stats in January 2000. Last month's absentee level was up from a 26 percent in December, and up from 25.2 percent a year ago. Absentee buyers paid a median $300,000 in January, up 33.3 percent from $225,000 a year earlier.

Buyers who appear to have paid all cash – meaning no sign of a corresponding purchase loan was found in the public record – accounted for 28.5 percent of sales in January. That was down from 29.8 percent in both December and January 2012. Cash buyers paid a median $300,000 in January, up 33.3 percent from $225,000 a year earlier.


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.

» Back to Real Estate Articles

Site Navigation