California home sales slowed in July as historically typical in summer. According to information released by the California Association of Realtors, the low sales volume has been hampered by low inventory, but some places like the Bay Area are starting to see an uptick in homes for sale.
Closed escrow sales of existing, single-family detached homes in California totaled 415,840 units in July. Sales were down 4.1 percent from June and down 5.1 percent from July 2015.
Realtor officials say even with the drop in sales due to low inventory, the fundamentals of the housing market, like a growing economy and job creation remain strong. The market is also boosted by low mortgage interest rates.
"Despite the tight housing supply conditions that have persisted over the past few years, home sales have stayed relatively solid," said California Association of Realtors president Pat "Ziggy" Zicarelli.
July's statewide median home price was $509,830, down 1.8 percent from June's median of $519,410. The median was up 3.9 percent from $490,780 in July 2015.
Information from MLSListings Inc. shows compared to July last year, sales were down 18 percent in Santa Clara County and down 14 percent in San Mateo County. Santa Clara County saw a drop of 21 percent from June, while San Mateo County saw a drop of 16 percent.
Compared to July 2015, the median price remained positive. The July median price for a Santa Clara County single-family home was $1,045,000, up 8 percent from $965,000 last year. San Mateo County's median of $1,350,000 was up 4 percent. Compared to June, the median price grew 2 percent in San Mateo County, and remained flat in Santa Clara County.
Inventory of single-family homes is showing gains in both counties. From July last year, Santa Clara County inventory rose 5 percent and San Mateo County's was up 18 percent. Compared to June, inventory grew 2 percent in Santa Clara County, and 1 percent in San Mateo County.
"The tight housing supply in Silicon Valley is limiting the number of homes sales, but now we are seeing more sellers, motivated by high prices, listing their homes for sale. This is encouraging for buyers who have been frustrated by few homes for sale," said Karen Trolan, president of the Silicon Valley Association of Realtors.
Trolan noted another incentive for buyers is mortgage rates are expected to remain low in the foreseeable future due to global economic uncertainty. According to Freddie Mac, the 30-year, fixed-mortgage interest rate averaged 3.44 percent in July, compared with 3.57 percent in June and 4.05 percent in July 2015. Adjustable-rate mortgage interest rates averaged 2.75 percent, a decline from 2.78 percent in June and 2.96 percent in July 2015.
Trolan reminds consumers, "When thinking of buying or selling in today's market, maximize your strengths using a Realtor."
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.