2014 saw a return to a near normal housing market, with sales moving at a moderate pace and home price appreciation growing at more sustainable levels, according to California Association of REALTORS® (C.A.R.) officials. The December C.A.R. data shows California's regional housing markets ended the year with mixed results. Home sales are down statewide, but some areas are seeing more sales activity.
Statewide home sales rose from a year ago for the first time in nearly a year and a half, but for 2014 as a whole, a preliminary 383,320 single-family homes closed escrow, down 7.6 percent from a revised 2013 figure of 414,900. The statewide median home price has been higher on a year-over-year basis for more than two years, but price gains have narrowed over the past few months.
"Home sales were down on a statewide basis, with pockets of gains in sales activity, especially in Southern California and the Central Valley, where home sales were higher than the prior month and year," said C.A.R. 2015 President Chris Kutzkey. "Not so for the San Francisco Bay Area, which saw run-ups in sales and prices throughout the year. This market has tempered from its earlier frenzied pace mostly due to extremely tight inventory."
Closed escrow sales of existing, single-family detached homes in California totaled 366,000 units in December, down 2.9 percent from a revised 376,890 in November, but up a slight 0.6 percent from a revised 363,740 in December 2013. The negligible year-to-year increase was the first since July 2013, according to C.A.R.
The statewide median price of an existing, single-family detached California home increased 1.7 percent from November's median price of $444,830 to $452,570 in December and was up 3.1 percent from the revised $438,790 recorded in December 2013.
Sales and home prices in San Mateo County slowed in December. Sales of single-family homes were down 9.7 percent from November and down 8.7 percent from December 2013. The median price of an existing single-family home in December was $980,000, down 10.3 percent from November's median of $1,092,500 and 2 percent lower than the December 2013 median of $1,000,000.
Meanwhile, single-family home sales in Santa Clara County registered no change month-to month and were down 8.3 percent from December 2013. The median price of an existing single-family home in December was $846,500, down 0.4 percent from November's median of $850,000 and nearly 10 percent higher than the December 2013 median of $769,900.
"Home prices in Santa Clara County are higher than at any time in the last 10 years," observed Chris Isaacson, 2015 president of the Silicon Valley Association of REALTORS®. "Much of the rise in home prices today is due to the lack of inventory and strong job growth in the county."
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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