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REALTOR®: State’s Home Sales Down 24.5 Percent, Median Home Price Down 29 Percent in March

Palo Alto housing market active in March

Wednesday, April 30, 2008

The California Association of REALTORS® (C.A.R.) reports home sales in the state were down 24.5 percent in March compared with the same period a year ago, and the median price of an existing home dropped 29 percent. The housing market in Silicon Valley neighborhoods remains active, as homes are staying on the market for a shorter period of time compared with the same period last year.

Statewide home resale activity decreased 24.5 percent from the revised 422,300 sales pace recorded in March 2007. "Sales continue to be impacted by problems in the real estate finance sector, which by some measures have eroded since the start of the year," according to C.A.R. President William E. Brown.

The C.A.R. report discloses the median price of an existing, single-family detached home in California during March 2008 was $413,980, a 29 percent decrease from the revised $582,930 median for March 2007.

"Both tighter underwriting standards and the ongoing effects of the credit/liquidity crunch continue to constrain sales," explained C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Historically, mortgage rates on jumbo loans are 0.2 percent to 0.4 percent higher than those on conforming loans, but the spreads in recent weeks have been as large as 2 percentage points, reflecting an increase in the perceived risk associated with these loans."

"The lack of available funds for loans, even for qualified buyers, continues to keep the demand side of the market thin, and enables buyers with financing (or all cash) to exert leverage over sellers," Appleton-Young added.

In a separate report covering more local statistics, 4.9 percent, or 14 out of 283 cities and communities, showed an increase in their respective median home prices from a year ago. In the Silicon Valley region, the cities of Mountain View and Sunnyvale ranked among the top 10 cities in the state with the highest median home price in March. Mountain View's median home price in March was $862,000; Sunnyvale's median home price was $806,500. Both cities also were among the top cities with the greatest median home price increases in March compared with the same period a year ago. Mountain View showed a 25.8 percent increase in median home price and Sunnyvale showed a 15.2 percent increase.

Information from MLSListings Inc., the Multiple Listing Service of the Silicon Valley Association of REALTORS® (SILVAR), still points to a healthy market in the Silicon Valley region, as average days on market for single family homes in many neighborhoods are down compared with the same period last year. In March 2008 average days on market for a single family home in Palo Alto was 19, down from 33 the prior year. Average days on market for a single family home in Los Gatos in March was 33, down from 37 the prior year. Days on market for single family homes were also down in Cupertino, Los Altos, Los Altos Hills, Mountain View and Saratoga compared to the same period a year ago.

In the state of California, the median number of days it took to sell a single-family home was 56.7 days in March 2008, compared with 52.9 in March 2007.

The median sales price in some neighborhoods slipped slightly, according to MLSListings Inc. The MLS data shows in March 2008, the median sales price for a single family home in Palo Alto was $1,617,500, down from $1,634,994 in March 2007. The median sales price for a single family home in Los Gatos in March was $1,400,000, down from $1,427,000 in the same period last year.

Leannah Hunt, president of the Silicon Valley Association of REALTORS®, said although demand for homes in the region is still strong, the subprime loan problem and foreclosures in other parts of the state continue to impact the housing market.

"Both tighter underwriting standards and the ongoing effects of the credit/liquidity crunch continue to constrain sales," said Hunt, who is a Realtor with Coldwell Banker in Palo Alto.


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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