Even with the lowest housing inventory level in more than 13 years, existing home sales in California had a year-over-year gain in December and the median sales price saw a solid annual increase, according to the California Association of Realtors. Home sales were especially hot in Santa Clara County, which recorded a median of just nine days on market.
According to information collected by C.A.R. from more than 90 local Realtor associations and MLSs statewide, closed sales of existing, single-family detached homes in California totaled 420,960 units in December, down 4.4 percent from the November level and up 1.4 percent from December 2016.
The statewide median price rose at a strong pace over last year. The $549,560 December median price was 0.5 percent higher than November's median of $546,820 and 7.6 percent higher than the revised $510,560 median in December 2016. The year-over-year price gain has been growing at or above 7 percent for six of the past seven months.
The state Realtor group reported California's housing market posted a solid performance in 2017with a preliminary 423,760 homes closing escrow, up 1.4 percent from 417,720 in 2016. After a strong first quarter start in 2017, sales momentum lost steam throughout the remainder of the year. Year-to-date sales growth declined and hit the lowest level by year-end.
The supply shortage and affordability continue to impact sales, as low inventory pushed home prices even higher. With housing inventory tightest in the San Francisco Bay Area, home sales there dipped 0.3 percent from last year and were down 14.3 percent from November.
Homes in the Bay Area continued to appreciate the most, with a 14 percent growth rate from the previous year. Seven of the nine counties in the region recorded a year-over-year increase in median price of at least 10 percent, with Santa Clara County posting the highest price increase, up 35 percent from last year.
"Housing inventory statewide is at its lowest level in 13 years. In Silicon Valley, the severe housing shortage continues to push up home prices and impact affordability," said Bill Moody, 2018 president of the Silicon Valley Association of Realtors. Moody informed Realtors at a local association district meeting early this month that there were a total of 414 listings in Santa Clara County - 351 single-family homes and 63 townhomes/condos.
December closed sales in Santa Clara County were down 11 percent from the previous month and 5 percent lower from the previous year. MLSListings Inc. reports the December median price of a single-family home was $1,300,000, and sold in nine days for 109 percent of the asking price. The median was one percent higher than the November median of $1,285,000 and 35 percent higher than the $961,000 median of a year ago.
"Silicon Valley's market remains solid, but it will continue to be impacted by inventory shortages. We will still have to see if the new tax reform will have an effect on the market," said Moody.
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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