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REALTOR®: California Home Sales Up 18 percent, as Median Prices Fall 35.3 Percent in May

Median home prices in Cupertino, Los Gatos, Sunnyvale, Los Altos rise.

Wednesday, June 25, 2008

California home sales increased 18.1 percent in May compared with the same period in 2007, while the median price of an existing home dropped 35.3 percent, according to the California Association of REALTORS® (C.A.R.). There were exceptions, however. In Santa Clara County, median home prices in Cupertino, Los Gatos, Sunnyvale, and Los Altos were significantly up in May compared with the same period a year ago.

"Home sales exceeded 400,000 last month for the first time since early 2007. While this is a welcome sign for the market, it was due in part to the large share of distressed homes for sale in many parts of the state," said C.A.R. President William E. Brown. "Sales also rose above their year ago levels for the second month in a row after 30 consecutive months of year-to-year decreases. The lower prices associated with distressed sales along with favorable interest rates both contributed to higher sales levels."

The total closed escrow sales of existing, single-family detached homes in California was 423,700 in May at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. In May 2007, home sales were at 358,640.

"With lower prices and favorable interest rates, affordability has improved significantly in recent months, leading to higher sales levels," said Leannah Hunt, president of the Silicon Valley Association of REALTORS®, the local 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. 
 
The median price of an existing, single-family detached home in California in May 2008 was $384,840, down 35.3 percent from last May's median of $594,530, C.A.R. reported. The May 2008 median price fell 4.7 percent compared with April's $403,870 median price.

"The statewide median price declined 35.3 percent to $384,840 in May, a record for year-to-year percentage decreases in the median, reflecting the effect of large numbers of short sales and foreclosures in the market," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "With the statewide median in the $585,000- to $595,000-range through August of last year, we expect the market to continue to experience large year-to-year adjustments through the summer, even if the median price holds steady over the next few months."

C.A.R.'s Unsold Inventory Index indicates the number of months that are needed for the current supply of homes on the market to deplete at the current sales rate. The rate for existing, single-family detached homes in May 2008 was 8.4 months, compared with 10.7 months (revised) for the same period a year ago. Additionally, the median number of days it took to sell a single-family home was 49.7 days in May 2008, compared with 50.8 for the same period last year. This indicates 2008 has proved to be a better market for sellers.

In Santa Clara County, the median home price dropped a significant 12.5 percent, currently at $630,000, compared to last year's median price of $720,000. Gilroy experienced the lowest drop, with the median price down 30.9 percent, while Cupertino experienced the largest median price increase, at 16.7 percent.

Los Altos, Saratoga, and Los Gatos were three of the 10 cities with the highest median home prices in California during May 2008, with $1,710,000, $1,506,500, and $1,350,000 median home prices, respectively.

Cupertino, Los Gatos, Sunnyvale and Los Altos were in the top 10 cities with the greatest median home price increases this past May. Cupertino's median price increased 16.7 percent; Los Gatos 10.2 percent; Sunnyvale, 4.7 percent; and Los Altos moving up 1.8 percent.


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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