January home sales were that month's best performance in three years, according to the California Association of Realtors (C.A.R.). Realtor officials blame the month-over-month slowdown on delayed escrow closings caused by new loan disclosure rules. Meanwhile, home prices appear to be leveling off, except in the Bay Area which is the only region where homes are selling above original list prices due to constrained supply.
Closed escrow sales of existing, single-family homes in the state totaled 383,670 units in January, down 5.4 percent from the revised 405,760 units in December and up 8.8 percent from home sales in January 2015. The January 2016 sales level was the highest since January 2013, when 421,780 homes were sold.
"While home sales increased year over year in January, they decreased minimally on a monthly basis, primarily due to a stronger than usual sales gain in December 2015, when the backlog of mortgage approvals caused by new loan disclosure rules were carried over from November," said C.A.R. president Pat "Ziggy" Zicarelli. "Looking ahead, the slowdown should be a transitory interruption to an otherwise positive trend."
The statewide median price of a single-family home fell 4.3 percent in January to $468,330 from $489,310 in December. January's median price was 9.2 percent higher than the revised $428,980 recorded in January 2015, the largest price gain since May 2014.
MLSListings Inc. reports year-over-year single-family home sales made gains in all its home counties, with San Mateo County home sales up 36 percent and Santa Clara County sales up 18 percent. January sales fell well below that of the previous month, dropping 59 percent in both San Mateo and Santa Clara counties.
According to the local MLS provider, compared to January 2015, the median sales price for a single-family home in January 2016 rose 11 percent in San Mateo County to $1,077,500. In Santa Clara County, the median increased 9 percent to $895,000. Month-over-month, San Mateo County's median was up 7 percent from the median of $999,444, while Santa Clara County's median saw little change from the December median of $899,000.
"The shortage of homes for sale is naturally pushing sales prices higher than original asking prices, particularly here in Silicon Valley. Employment has expanded greatly, as well as the demand for homes. The main way to alleviate the problem is to build more housing in the area," said Karen Trolan, president of the Silicon Valley Association of Realtors.
According to the Silicon Valley Index, job growth in Silicon Valley is at 4.3 percent, its highest level since 2000. In 2015, the Bay Area added 129,000 new jobs, of which 64,000 are in Silicon Valley.
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.
For further information, please email or call the SILVAR office at (408) 200-0100.