California's median price surged to an eight-month high and the state's existing home sales rose both month to month and year to year in March, according to information from the California Association of Realtors. The price increase was partly due to a shift in sales to high cost regions and robust price growth in the high cost areas of San Francisco, Marin, San Mateo and Santa Clara counties.
Closed escrow sales of existing, single-family detached homes totaled 423,990 units, up 0.3 percent from February and up 1.6 percent compared with sales in March 2017. The San Francisco Bay Area led the way posting a year-over-year sales gain of 3.1 percent from last March.
Six of nine San Francisco Bay Area counties posted sales increases, including Santa Clara, 6.9 percent, and San Mateo, 6.4 percent. Sales in San Francisco and Marin counties increased by double digits of 12.4 percent and 10.2 percent, respectively.
The Los Angeles metro region experienced a 5.9 percent annual sales drop. Sales in the Inland Empire declined 5.7 percent.
The statewide median price jumped 8.1 percent in March to $564,830 from $522,440 in February, and rose 8.9 percent from the $518,600 median in March 2017. The year-over-year price gain has been growing at or above 7 percent for nine of the past 10 months, according to C.A.R.'s data.
"Housing demand remains strong and competition is fierce, especially in San Francisco, San Mateo, and Santa Clara, where home prices are being pushed to record levels and buyers are paying as much as 17 percent over asking price in some markets," observed C.A.R. senior vice president and chief economist Leslie-Appleton-Young.
The San Francisco Bay Area median price increased 18.1 percent from $830,000 last March to $980,000 in March 2018. The median price surged by double-digits in seven of nine counties. Alameda, Marin, San Mateo, Santa Clara, San Diego, and Orange counties all hit a new peak price at $955,000, $1,392,500, $1,615,000, $1,454,500, $625,400, and $824,450, respectively.
"Our tight inventory continues to drive prices higher. Half of the new inventory in Santa Clara County is sold within a week. In San Mateo and Santa Clara counties, the median prices continue to increase, month over month and year over year," commented Bill Moody, president of the Silicon Valley Association of Realtors.
According to MLSListings Inc., the median days on market in Santa Clara County dropped to eight days in March. Inventory was off 3 percent from February, and the overall inventory level for March was down 40 percent from March 2017, with 654 homes available, compared with 1,081 homes last year.
"Competition for homes it tough. We are even seeing multiple pre-emptive offers as buyers try to purchase a home before interest rates edge up higher," said Moody.
Mortgage rates have been rising since breaking 4 percent in February. The 30-year, fixed-mortgage interest rates averaged 4.44 percent in March, up from 4.33 percent in February and from 4.20 percent in March 2017, according to Freddie Mac.
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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