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REALTOR®: California Home Sales Activity Up, Good Time for Buyers

Wednesday, July 30, 2008

Home sales are improving in the state of California, according to the California Association of REALTORS®. C.A.R. recently reported California home sales increased 17.5 percent in June compared with the same period a year ago, while the median price of an existing home fell 37.7 percent.

"Statewide home sales remained above the 400,000 level for the second month in a row, and up nearly 18 percent from a year ago," said the C.A.R. President William E. Brown. "Sales last month also posted their third consecutive year-to-year gain."

The median price of an existing, single-family detached home in California during June 2008 was $368,250, down 37.7 percent decrease from the revised $591,280 median for June 2007. The June 2008 median price fell 4.3 percent compared with May's $384,840 median price.

C.A.R. Chief Economist Leslie Appleton-Young said the significant declines in the median price over the past several months are largely due to a dramatic shift in the sales mix since the onset of the credit crunch and the increase in the share of distressed sales.

"A year ago, the under $500,000 price range accounted for 40 percent of sales, the middle segment made up about 45 percent, and the over $1 million segment captured 15 percent of the market. As of June 2008, the shares had shifted to 67 percent, 24 percent, and 9 percent, respectively," Appleton-Young explained.

C.A.R. pegged the median price of all home sales – new and existing, condos and single-family - in Santa Clara County at $620,000 in June 2008, down 13.3 percent from $715,000 in June 2007. Hard hit were homes in Gilroy, where the median fell 33.8 percent to $481,000; Morgan Hill, down 23.5 percent to $570,250; Milpitas, down 21.3 percent to $535,000; and San Jose, down 21.9 percent to $531,000.

There are, however, markets on the other side of the spectrum that appear insulated from the overall state and national housing crisis. Leannah Hunt, president of the Silicon Valley Association of Realtors, points out Cupertino, Los Gatos, Sunnyvale and Campbell, which showed increases in their median home prices. According to the state association figures, in June 2008, the median price of a Cupertino home was $1,072,500, up 33.3 percent from June 2007; Los Gatos, $1,143,000, up three percent; Sunnyvale, $770,000, up 1.4 percent; and Campbell, $725,500, up 1.3 percent.

"More buyers are beginning to see the window of opportunity as homes in these areas continue to hold their value and these communities continue to experience month over month increases in sales," said Hunt.

Statewide, the 10 cities with the highest median home prices during June 2008 were Manhattan Beach, $1,942,500; Los Altos, $1,595,000; Burlingame, $1,575,000; Newport Beach, $1,325,000; Mill Valley, $1,150,000; Los Gatos, $1,143,000; Cupertino, $1,072,500; San Carlos, $1,022,500; Danville, $965,000; Santa Barbara, $950,000.

Statewide, the 10 cities with the greatest median home price increases in June 2008 compared with the same period a year ago were Manhattan Beach, 49.4 percent; Cupertino, 33.3 percent; San Luis Obispo, 11.4 percent; Los Gatos, 3 percent; San Carlos, 1.5 percent; Sunnyvale, 1.4 percent; Ridgecrest, 1.4 percent; Campbell, 1.3 percent; Temple City, 0.9 percent; San Rafael, 0.8 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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