California home sales in November were higher year-over-year, with every major region of the state posting double-digit annual sales increases. The California Association of Realtors points to the new mortgage industry regulations delaying some escrow closings last year and the anticipation of high interest rates in December as likely reasons for higher November home sales compared to a year ago.
Statewide closed escrow sales of existing, single-family detached homes totaled 442,320 units in November, down a negligible 0.1 percent from 442,970 in October and up 17.7 percent from a revised 375,850 in November 2015. Sales were at the third highest level since December 2012, and the year-over-year increase was the largest since 2009, when first-time home buyer tax credits fueled home sales.
"November's strong sales gain from last year can be partly attributed to weak sales caused by the Consumer Financial Protection Bureau's implementation of Know Before You Owe TILA-RESPA Integrated Disclosure (TRID) last October, which cut into sales that would have occurred last November," said Geoff McIntosh, president of the state Realtor group.
Karen Trolan, president of the Silicon Valley Association of Realtors, added that mortgage rates have steadily increased over the past weeks, prompting buyers to act. "Rates are still extremely low historically, but experts are forecasting rates will gradually increase and not go back to as low as they once were. We should see more market activity next year as those clients sitting on the fence may decide it's time to buy and lock in on still low mortgage rates before rates rise further," said Trolan.
The 30-year, fixed-mortgage interest rate averaged 3.77 percent in November, up from 3.47 percent in October, but down from 3.94 percent in November 2015, according to Freddie Mac. The five-year, adjustable-rate mortgage interest rates also rose to an average of 2.99 percent, up from 2.83 percent in October, but down negligibly from 3 percent in November 2015.
November's median price for an existing single-family detached home in California was $501,710, up 4.9 percent from the revised $478,140 recorded in November 2015. The November median was 2.3 percent lower than the median of $513,520 in October.
November home sales in Santa Clara County were 25.8 percent higher than the same month last year and dipped 4.7 percent from the previous month. The November median sale price of $1,010,000 was 4.7 percent higher than the median of $965,000 in November 2015 and down 3.6 percent from the October median of $1,047,500.
According to the state Realtor report, the average price per square foot for a single-family home statewide was $250 in November. San Francisco County had the highest price per square foot at $804/sq. ft., followed by San Mateo ($783/sq. ft.), and Santa Clara ($602/sq. ft.).
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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