Silicon Valley continues to lead the state's housing market recovery. The California Association of REALTORS® (C.A.R.) reports San Mateo and Santa Clara counties each recorded the smallest share of distressed home sales in July.
San Mateo and Santa Clara counties each recorded the share of single-family distressed sales at 4 percent in July. In both counties distressed home sales made up 7 percent of total home sales in the previous month. In July 2012, distressed home sales accounted for 23 percent of all home sales in Santa Clara County, and 15 percent of all home sales in San Mateo County.
Both San Mateo and Santa Clara counties posted price gains early in the recovery, with their economies improving due to the job growth in the tech industry, according to Carolyn Miller, president of the Silicon Valley Association of REALTORS®. "With Facebook, Google, Yahoo, Apple and other tech companies based in the area expanding and hiring employees, the recovery was bound to hit Silicon Valley sooner than most areas," said Miller. "We saw home prices escalate faster. They are still rising, but not at as fast a pace. We are seeing the market become more sustainable."
According to C.A.R., California's housing market has improved overall, with 25 of the 38 reported counties showing a month-to-month decrease in the share of distressed sales in July. Meanwhile, the share of equity sales statewide has continued to rise for 17 of the last 18 months, and accounted for more than four in five sales - the highest share since December 2007. The share of equity home sales increased to 82.9 percent of total home sales in July, up from 79.9 percent in June. Equity home sales made up 59.2 percent of total sales in July 2012.
"The increase in the share of equity sales reflects a market that is fully transitioning from investor purchases of distressed homes to primary home purchases by households. The market continues to improve as more previously underwater homes gain equity due to recent upward movement in prices," said Leslie Appleton-Young, C.A.R. vice president and chief economist. "As a result, we're seeing a significant decline in the supply of short sale and bank-owned properties."
The combined share of all distressed property sales in the state was 17.1 percent in July, down to the lowest level since April 2009. The share of distressed property sales as a portion of total sales was at 20.1 percent in June and 40.8 percent in July 2012. The share of short sales was 11.6 percent, down from 12.9 percent in June and 22.7 percent of all sales the same month last year. f REOs made up only 5 percent of all sales, down from 6.6 percent in June and from 17.7 percent in July 2012. The July 2013 figure was the lowest since September 2007.
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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