According to a California Association of Realtors® (C.A.R.) report, April home sales in the Santa Clara County region fell 16.9 percent compared to the prior year, and were down 0.4 percent from March 2007, but the median home price in the county was $715,000, up 5.6 percent from $677,000 in April of 2006.
C.A.R. reported total home sales in the state were likewise down. California home sales dropped 27.8 percent in April compared with the same period a year ago, while the median price of an existing home increased 6.2 percent.
"April sales fell in part because of tighter credit standards and growing concerns about the impact of subprime loans on the market," explained California Association of Realtors® (C.A.R.) President Colleen Badagliacco. "Throughout the state inventory levels have increased to their highest levels in recent years, giving buyers more time to view a greater variety of homes and sellers who set realistic prices an edge in the market."
The median price of an existing, single-family detached home in California during April 2007 was $597,640, a 6.2 percent increase over the median for April 2006. The April 2007 median price increased 2.1 percent compared with March's median price.
"Although the median price of a home in California continues to rise, this reflects the fall-off in sales in the lower-priced markets of the state, where new home inventories and foreclosures are competing with the existing home market," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Fewer sales from these regions, coupled with modest gains in some of the stronger coastal markets, are pushing the median price for the state up slightly."
"It's important to understand what's happening, that we are measuring the median price of homes that are really selling and the lower end of the market has really been hit by subprime issue, foreclosures, with the central part of the state, where you've had a significant amount of new construction, affordable housing, a lot of investment activity, and that part of the market has dropped down a bit, while the higher end of the market, even if the economy is not stellar, is still growing," Appleton-Young explained in a recent radio interview. "We've got job growth, income growth, so the higher end of the market is holding its own."
The C.A.R. chief economist believes prices have pretty much plateaud in many parts of the state. "Buyers who have been reading about this 'housing bubble,' and are waiting for prices to drop 20 to 30 percent, they're going to be waiting for a long, long time. That's not really in the cards," she said. "Buyers are really taking their time looking, but they still want to be homebuyers."
Highlights of C.A.R.'s resale housing figures for April 2007:
. C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in April 2007 was 10 months, compared with 5.7 months (revised) 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.
. Thirty-year fixed-mortgage interest rates averaged 6.18 percent during April 2007, compared with 6.51 percent in April 2006, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.45 percent in April 2007 compared with 5.62 percent in April 2006.
. The median number of days it took to sell a single-family home was 53.5 days in April 2007, compared with 42.5 days (revised) for the same period a year ago.
Statewide, the 10 cities and communities with the highest median home prices in California during April 2007 were: Manhattan Beach, $1,850,000; Los Altos, $1,710,000; Saratoga, $1,550,000; Burlingame, $1,500,000; Laguna Beach, $1,457,500; Newport Beach, $1,400,000; Los Gatos, $1,200,000; Santa Barbara, $1,200,000; Palos Verdes Estates, $1,180,000; Mill Valley, $1,112,500; Rancho Palos Verdes, $1,109,000.
Statewide, the 10 cities and communities with the greatest median home price increases in April 2007 compared with the same period a year ago were: La Habra, 55.1 percent; Laguna Niguel, 26.2 percent; Los Gatos, 20 percent; Los Angeles, 19.8 percent; Moorpark, 18.7 percent; Dana Point, 18.2 percent; San Juan Capistrano, 17.1 percent; Redwood City, 15.3 percent; Ridgecrest, 13.9 percent; Walnut Creek, 13.6 percent.
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