Home sales and the median home price of single-family homes continue to rise, but the lack of inventory remains a major dilemma for the greater Bay Area home market.
Data from MLSListings Inc. for the counties of Santa Clara, San Mateo, Santa Cruz, San Benito and Monterey indicates year-over-year single-family home sales were up in all five counties - by 41 percent in San Mateo, 23 percent in Santa Clara, 22 percent in Santa Cruz, 15 percent in San Benito and 4 percent in Monterey. Month-over-month sales also climbed in all counties, except in Santa Cruz. Month-over-month sales in Santa Clara County were up 11 percent; San Mateo County, up 37 percent; San Benito County, up 10 percent; Monterey County, up 7 percent; Santa Cruz County, down 6 percent.
Locally, year-over-year median price increased in all counties except Monterey. The counties of Santa Clara and San Mateo experienced the largest increase in median price from a year ago. Santa Clara County's October median price of $695,000 was up a whopping 27 percent from $549,000 in October 2011, while San Mateo County's median of $823,000 was up 22 percent from $674,000 a year ago.
MLSListings indicates inventory of single-family homes in Santa Clara and San Mateo counties dropped 45 and 43 percent respectively since October 2011. Inventory in Monterey and Santa Cruz counties was also down 28 and 23 percent from 2011. The October 2012 inventory was down 10 percent from the previous month in Santa Clara County and down 6 percent in San Mateo County.
"The lack of inventory is the main story for the housing market, especially in our region," said Suzanne Yost, president of the Silicon Valley Association of REALTORS®. "Homes continue to sell at a faster pace. We expect the same robust sales activity as we move into next year, as confidence in the market continues to improve."
Statewide, the housing market appears just as robust, with strong year-over-year sales and price gains in nearly every county of the state, according to the latest California Association of REALTORS®. Closed escrow sales of existing, single-family detached homes in California totaled 544,380 units. Sales in October climbed 12.5 percent from a revised 484,050 in September and were up 10.2 percent from a revised 493,790 in October 2011. Most counties in the Northern California region posted double-digit year-over-year sales gains in October.
The statewide median price of an existing, single-family detached home was down 1.1 percent from September's $345,000 median price to $341,370 in October. October's median was up 23 percent from $277,450 in October 2011, marking the eighth consecutive month of annual price increases and the fourth consecutive month of double-digit annual gains.
C.A.R. indicated the Unsold Inventory Index for existing, single-family detached homes in October dropped to 3.1 months, down from 3.7 months in September and 5.5 months in October 2011. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered normal for the state.
The October inventory index in Santa Clara County was 1.9 months, down from 2.3 months in September and 3.9 months last year. San Mateo County's inventory was 2 months in October, down from 3 months last month and 4.7 months last year.
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.
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