California existing home sales rose year-over-year in September for the first time in seven months, according to the California Association of Realtors. Existing, single-family home sales totaled 425,680 in September on a seasonally adjusted annualized rate, up 1.3 percent from August and 0.8 percent from September 2015, according to information collected by the state Realtor group from more than 90 local Realtor associations and MLSes statewide. Home sales remained above the 400,000 pace for the sixth straight month, and the year-over-year increase was the first since January.
"While higher sales both on a monthly and an annual basis is a glimmer of good news, with most of the home-buying season behind us for 2016, it's not enough to tip the scales for an increase above 2015's sales pace," said Pat "Ziggy" Zicarelli, the state Realtor group president. "With listings continuing to decline and demand still strong, especially at the lower end of the market, affordability will remain a challenge for would-be buyers."
The statewide median price remained above the $500,000 mark for the sixth straight month, with minimal signs of cooling down due to a shortage of homes available for sale. September's median price increased 6.1 percent from the revised $484,670 recorded in September 2015. The median price of an existing, single-family detached California home was down 2.3 percent in September to $514,320 from $526,580 in August. The monthly price decline is primarily due to seasonal factors.
According to the state Realtor association's data, current home prices in the state are still 13.5 percent below their previous peak, though most parts of the San Francisco Bay Area have already reached new all-time highs. San Francisco County had the highest price per square foot in September at $852/sq. ft., followed by San Mateo County ($759/sq. ft.) and Santa Clara County ($612/sq. ft.).
The September median sales price of a Santa Clara County home was $1,000,000, up 2.6 percent from the August median of $975,000 and up 4.7 percent from $955,000 in September last year. September home sales rose 1.3 percent from August. Home sales were down 0.9 percent from September 2015.
The median sales price of a San Mateo County home was $1,290,000, an increase of 3.2 percent from the August median of $1,250,000 and up 7.5 percent from $1,200,000 in September 2015. September home sales in San Mateo County dropped 12.1 percent from the previous month and down 8.1 percent from last year.
"Silicon Valley's housing market continues to be strong and healthy. It is a good time to sell and a good time to buy. With the limited inventory and still very high demand for homes, the timing is right for sellers to put their home on the market. It is also a good time for buyers to jump in and purchase a home while interest rates are still low," said Karen Trolan, president of the Silicon Valley Association of Realtors.
Trolan said mortgage rates are expected to remain low in the foreseeable future, though the Federal Reserve is expected to raise interest rates by year's end or early next year. Mortgage rates edged slightly higher in September, with the 30-year, fixed-mortgage interest rate averaging 3.46 percent, up from 3.44 percent in August but down from 3.89 percent in September 2015, according to Freddie Mac. The five-year, adjustable-rate mortgage interest rates also rose in September to an average of 2.81 percent, up from 2.75 percent in August but down from 2.92 percent in September 2015.
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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