The shortage of inventory continues to constrain sales and fuel California home prices. The California Association of REALTORS® reports the state's median home price marked a full year of annual price gains, while a lack of inventory slowed total home sales for the month. Home buyers continue to face stiff competition due to the shortage of inventory.
Closed escrow sales of existing, single-family detached homes in California were down 5.9 percent from sales in February 2012. The statewide February median price of $333,880 was up 24.2 percent from $268,810 recorded in February 2012, marking a full year of annual price increases and the eighth consecutive month of double-digit annual gains.
"With an imbalance between supply and demand, home buyers have been fiercely competing with each other. More than half of home sales are receiving multiple offers, with homes getting an average of four to five offers, and some even more," says C.A.R. vice president and chief economist Leslie Appleton-Young.
MLSListings Inc. reports inventory has dropped each month from the prior year for 21 months in Santa Clara County and 20 months in San Mateo County. Santa Clara County's inventory of single-family homes in the month of February was down 52 percent from the same time last year. In San Mateo County, inventory of single-family homes in February dropped 44 percent from February 2012.
Due to high demand and the shortage of homes, the median home sales price continues to rise. Santa Clara County's February median sales price of $712,250 was up 32 percent from the median of $540,000 in February 2012. San Mateo County's February median of $800,000 was up 36 percent from $589,000 recorded in February last year.
Carolyn Miller, president of the Silicon Valley Association of REALTORS®, says it is important that buyers work with a knowledgeable and experienced REALTOR®, especially in a market that is seeing more multiple offers than traditional sales. "Getting the bid is critical, especially if you are up against 10 other buyers. Both REALTOR® and buyer need to work closely as a team if they are serious about getting the bid."
Miller shares good business practices she advises buyers to follow in this competitive marketplace:
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.