Home sales rebounded, increasing 49.2 percent in April in California compared with the same period a year ago, the California Association of REALTORS® reported last week. April marked the eighth consecutive month of home sales above the 500,000 level.
"Regional sales were impacted by the state's two-tier market," according to James Liptak, C.A.R., president. "Inventory levels for homes in the under $500,000 segment shrank to nearly three months in April, compared with almost 10 months a year ago, while unsold inventory in the more than $1 million segment rose to approximately 17 months, compared with roughly 10 months in April 2008."
Closed escrow sales of existing, single-family detached homes in California totaled 540,360 in April, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 49.2 percent from the revised 362,170 sales pace recorded in April 2008. Sales in April 2009 increased 3.2 percent compared with the previous month.
The median price of an existing, single-family detached home in California during April 2009 was $256,700, a 36.5 percent decrease from the revised $404,470 median for April 2008, C.A.R. reported. The April 2009 median price rose 1.4 percent compared with March's $253,040 median price.
"The statewide median price has increased for two consecutive months, and the nine-month string of year-to-year price declines in the 40-percent range has ended," said C.A.R.'s Chief Economist Leslie Appleton-Young. "It appears that the median price is now at or near the bottom.
"Favorable home prices in many parts of the state have led to an increase in affordability for first-time buyers. In the first quarter of 2009, affordability rose to 69 percent, enabling many to take advantage of first-time buyer programs and near record-low interest rates," said Appleton-Young.
In Santa Clara County, sales of single-family detached homes in April increase 40.7 percent from the prior year, and 30.5 percent from the prior month. The median price in April 2008 was at $465,000, up 3.6 percent from March, but still down 38.2 percent from the same period last year.
"Jumbo market lending continues to be severely constrained and is impacting our higher priced markets," according to Julia Truesdale Keady, president of the Silicon Valley Association of REALTORS®.
C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in April 2009 was 4.6 months, compared with 9.8 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate. The median number of days it took to sell a single-family home was 48.7 days in April 2009, compared with 51.8 days for the same period 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.