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REALTOR®: California home sales fall in December, but median price rises

Wednesday, January 22, 2014

December marked a slow month for home sales. According to the California Association of REALTORS® (C.A.R.), statewide home sales fell for the fifth straight month in December. In Silicon Valley, where the market has been on fire during much of 2013, December sales of single-family homes were flat, according to MLSListings Inc.

C.A.R. President Kevin Brown attributes the drop in sales to a tight housing inventory, the big drop in distressed homes for sale, higher home prices, and the uptick in interest rates. Brown noted housing prices are improving across the board, even reaching pre-2007 levels in parts of the Bay Area.

"The supply of foreclosures and short sales is the lowest it's been since well before the financial crisis, greatly constraining the number of these transactions. Higher prices and rising rates as the Fed slowly tapers are additional factors in the sales slowdown," said Brown.

December saw 361,890 California single-family homes close escrow, down 6.7 percent from November and down18.6 percent from December 2012. The California median price of an existing, single-family detached home increased 3.7 percent to $438,040 from the November median of $422,210, and was 19.7 percent higher than the December 2012 median.

In Silicon Valley, MLSListings Inc. reports compared to the prior month, December single-family home sales were up just 1 percent in Santa Clara County, and down 2 percent in San Mateo County. While Santa Clara County's December 2013 median home price of $770,000 was up nearly 13 percent from the same time the previous year, it was down 3 percent from the November 2013 median of $795,000. In San Mateo County, the median of $1,030,000 was up 31 percent from December 2012 and up 11 percent from the November 2013 median of $928,500.

"People wonder if this is the 'new normal.' What we are seeing right now is the normal for a market that is stabilizing. Like the rest of the nation, we were at a low point not too long ago, and now, with our booming economy we are seeing prices adjusting and the market slowly stabilizing," said 2014 President of the Silicon Valley Association of REALTORS® David Tonna.

Tonna said lack of inventory remains a major issue in the region. According to the MLS, San Mateo and Santa Clara counties posted the lowest inventory numbers since January 2008, at 387 and 922 listings respectively.

"We saw buyers join sellers in the sidelines last month for many reasons, including the fact that traditionally December is a slow buying season. We are seeing home values rise with the price growth, so inventory may improve in the coming months. We can't do much about the inventory. We just have to work with what we've got and hope sellers see it as their opportunity," said Tonna.


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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