SILVAR  :  Newsroom  : Real Estate Articles

Real Estate Articles

REALTOR®: Statewide Home Sales Increased 35.2 Percent in May

Wednesday, July 1, 2009

Home sales increased 35.2 percent in May in California compared with the same period a year ago, according to a recent report from the California Association of REALTORS®.

"Buyers are beginning to realize that the combination of favorable home prices, historically low mortgage rates, and first-time home buyer tax credits, may not align again for many years," said C.A.R. President James Liptak.

In May, closed escrow sales of existing, single-family detached homes in California totaled 556,590, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 35.2 percent from the revised 411,770 sales pace recorded in May 2008. Sales in May 2009 increased 2.9 percent compared with the previous month.

Meanwhile, the statewide median price rose for the third consecutive month in May, posting the largest monthly increase on record for the month of May. The median price of an existing, single-family detached home in California during May 2009 was $267,570, a 30.4 percent decrease from the $384,540 median for May 2008, but up 4.2 percent from April's $256,700 median price.

Nearly all regions in the state reported positive month-to-month changes in median price,
according to C.A.R. Chief Economist Leslie Appleton-Young.

"Inventory levels are well below the long-run average of seven months, which may account for the increase in median price," Appleton-Young said. "Although the state continues to operate in a bifurcated market, improved access to lending and price adjustments have led to increased activity in the high-end segment."

Julia Truesdale Keady, president of the Silicon Valley Association of REALTORS®, said the market in the Silicon Valley region is becoming more active, even for high-end homes.

"We are seeing more buyers making a move. Many are no longer sitting on the fence," Keady said.

C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in May 2009 was 4.2 months, compared with 8.7 months (revised) 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 53.5 days in May 2009, compared with 49.2 days (revised) 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.

» Back to Real Estate Articles

Site Navigation