Bay Area median prices experienced year-over-year increases in April, ranging from 23 percent and 24 percent in San Mateo and Santa Clara counties, respectively, to as much as 36 percent in Monterey County, according to a report from multiple listing service MLSListings Inc. The report states with the steady gains, Santa Clara and San Mateo counties are closing in on all-time market highs, within 8 percent and 11 percent of peak, respectively. Others have further to go to reclaim market highs, including Santa Cruz (19 percent), Monterey (52 percent) and San Benito (45 percent), the other Bay Area counties the MLS serves.
The April 2013 median price for a single-family home in Santa Clara County was $795,000, compared to $639,500 the same time a year ago. The April median price in San Mateo County jumped to $915,000 from $745,000 in April 2012.
Lack of inventory still remains a major factor impacting sales in all counties except in San Mateo, where they remained flat. Overall inventory of both condos and townhomes has fallen 61 percent from two years ago across the five counties served by MLSListings Inc. Days on Market (DOM) also hit decade- lows in April in all five counties, with 70 percent of sales in April selling in 20 days or less.
"REALTORS® are busy finding homes for people who want to buy. The story here is about the lack of sellers, not demand," said Carolyn Miller, president of the Silicon Valley Association of REALTORS®.
The California Association of REALTORS® reports a similar trend across the state. C.A.R. reported on Wednesday that California home sales and prices both experienced strong increases in April, with the median price surpassing the $400,000-mark for the first time in five years.
"California's housing market maintained its momentum in April, getting the spring home-buying season off to a good start," said C.A.R. President Don Faught. "Southern California regions such as Los Angeles, Orange County, and San Diego led the way in both month-to-month and year-over-year sales increases, while sales in the Bay Area region as a whole posted a healthy monthly gain but dipped slightly from last year."
Closed escrow sales of existing, single-family detached homes in the state totaled 423,510 units in April, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. Sales in April were up 1.3 percent from a revised 417,880 in March but down 3.7 percent from a revised 439,770 in April 2012.
The statewide median price of an existing, single-family detached home climbed 6.3 percent from March's revised median price of $378,960 to $402,760 in April. It was the first time since April 2008 that the statewide median price exceeded the $400,000 mark. April's price was up 28.9 percent from a revised $312,500 recorded in April 2012, marking 14 straight months of annual price increases and the 10th consecutive month of double-digit annual gains.
The available supply of homes for sale in the state was essentially unchanged from March, but was down markedly from a year ago. The April Unsold Inventory Index for existing, single-family detached homes was 2.8 months in April, down from 2.9 months in March, and down from 4.2 months in April 2012. A six- to seven-month supply is considered normal.
The median number of days it took to sell a single-family home dropped to 27.9 days in April, down from 29.4 days in March and down from a revised 48 days for the same period a year ago.
"This is now a seller's market. It is their time. Those waiting for prices to increase more may miss the boat if they wait too long. Buyers are willing now to make the commitment with mortgage rates still low, but the market is bound to level off as prices escalate further," said Miller.
Mortgage rates dipped in April, with the 30-year fixed-mortgage interest rate averaging 3.45 percent, down from 3.57 percent in March 2013 and down from 3.91 percent in April 2012, according to Freddie Mac. Adjustable-mortgage interest rates were flat from March, averaging 2.63 percent in April, but down from 2.78 percent in April 2012.
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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