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REALTOR®: Month of January sees moderate rise in inventory, with some sales decline

Wednesday, February 19, 2014

Housing inventory improved in the month of January, though not enough to beef up home sales. The California Association of REALTORS® (C.A.R.) reports statewide home sales were essentially flat last month even as the available supply of existing single-family detached homes for sale rose to 4.3 months in January, up from December's unsold inventory index of three months and an index of 3.5 months in January 2013.

The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered typical in the market.

MLSListings Inc. likewise reports that inventory in January improved from the previous month's supply of for sale homes in four of five counties the MLS serves. Inventory of single-family homes rose 20 percent in San Mateo County; 16 percent in Santa Clara County; 11 percent in Monterey County; and 4 percent in Santa Cruz County. Inventory dropped 4 percent in San Benito County.

When compared to the same month last year, January 2014 inventory was down 15 percent in San Mateo County, though well below the 30 to 40 percent levels in this market for some months in 2013. Santa Clara County's housing inventory was down by just 8 percent compared to the 14 to 50 percent range in 2013.

Even as inventory edged upward, the very limited supply of available homes for sale has hampered sales, according to David Tonna, president of the Silicon Valley Association of REALTORS®. "The lackluster sales during the last two months is not surprising. The months of December and January are typically the slowest months of the year for sales. I believe we'll see some improvement as home sellers gear up to sell their homes during the spring, which is typically the start of the home buying season," said Tonna.

MLSListings reports compared to the same month last year, January 2014 sales in Santa Clara County were down 14 percent and down 3 percent in San Mateo County. When compared to the previous month, sales in Santa Clara County were down 36 percent, and down 26 percent in San Mateo County.

Meanwhile, the January 2014 median price of $730,000 for a single-family home in Santa Clara County was five percent below the December 2013 median of $770,000, but up 11 percent from the median of $660,000 in January a year ago.

For San Mateo County, the January median of $992,500 was down 4 percent from the December 2013 median of $1,030,000, but up 43 percent from the January 2013 median of $695,000.

C.A.R. indicates statewide, closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 363,640 units in January, making it the third straight month that sales were below the 400,000 level and the sixth straight decline on a year-over-year basis. Sales in January inched up 0.3 percent from December but were down 13.8 percent from January 2013.

The statewide median price of an existing, single-family detached home fell 6.2 percent from December's revised median price of $438,090 to $410,990 in January. January's price was 22.1 percent higher than the revised $336,650 recorded in January 2013, marking 23 consecutive months of year-over-year price increases and the 19th straight month of double-digit annual gains, as sales of higher priced homes made up a larger share of the market compared to 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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