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REALTOR®: C.A.R. Reports April Median Price Increased 21 Percent; Home Sales Decreased 8.1 percent

April home sales in Santa Clara County up 4.3 percent, prices up 35 percent.

Tuesday, May 25, 2010

The Silicon Valley housing market continued to see increased sales in the month of April, even though overall home sales in the state showed mixed results, according to a California Association of REALTORS® report released early this week.

Home sales fell 8.1 percent in April in California compared with the same period a year ago, but the median price of an existing home rose 21 percent. Sales of existing single-family detached homes in Santa Clara County, however, bucked the statewide trend, increasing 4.3 percent from the prior year. The median price of an existing single-family detached home in the region was $628,000 in April, up 35 percent from April 2009. The jump in median price is attributed to more sales taking place in the high-end market.

"Sales activity in the high-end market appeared sluggish around this time last year, but there is more activity in this price range this year because high-end financing has loosened a bit and the government tax credits may have provided the additional incentive for buyers to make their move," said Jeff Bell, president of the Silicon Valley Association of REALTORS®.

In California, closed escrow sales of existing, single-family detached homes in California totaled 483,830 in April. Statewide home resale activity decreased 8.1 percent from the revised 526,720 sales pace recorded in April 2009. Sales in April 2010 decreased 6.4 percent compared with the previous month.

The median price of an existing, single-family detached home in California during April 2010 was $306,230, a 21 percent increase from the revised $253,110 median for April 2009, C.A.R. reported. The April 2010 median price increased 1.5 percent compared with March's $301,790 median price.

C.A.R. President Steve Goddard said activity might have been delayed until at least May, as buyers decided to take advantage of new state tax credits that became effective May 1. "It's likely that the state tax credit that went into effect May 1 created an incentive for many buyers to postpone closing escrow so they could take advantage of both the state and federal tax credits that were available," Goddard said. "We should see the pace of closed sales edge up in May and June as these tax-incentivized transactions close."

C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in April 2010 was 5.1 months, compared with five 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 39.4 days in April 2010, compared with 48.1 days for the same period a year ago.

In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 254 of the 374 cities and communities reporting showed an increase in their respective median home prices from a year ago. In Silicon Valley, the communities of Saratoga, Los Altos, Cupertino and Los Gatos ranked among the top 10 cities with the highest median prices in the state in April. The cities and their median home price included Manhattan Beach, $1,572,500; Saratoga, $1,440,000; Los Altos, $1,428,750; Mill Valley, $1,200,000; Laguna Beach, $1,162,500; Cupertino, $1,120,000; Newport Beach, $1,037,500; Los Gatos, $1,034,000; Calabasas, $925,000; and Santa Monica, $870,000. Cupertino was among the 10 cities with the greatest median home price increase in April compared to the same period a year ago.

"The demand for homes continues to be strong in Silicon Valley," Bell said. "We anticipate sales would be stronger if financing eased for buyers in the high-end market."
 


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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