California home sales fell to their lowest level since the Great Recession as the housing market experienced the full impact of the coronavirus pandemic in May, according to the California Association of Realtors. Month-over-month performance in places like Santa Clara County show signs of a recovery, which is encouraging for both buyers and sellers.
For the second consecutive month, statewide sales remained below 300,000 in May. Closed escrow sales of existing, single-family detached homes in California totaled 238,740 units, down 13.9 percent from 277,440 in April and down 41.4 percent from 407,330 units sold a year ago. Additionally, the year-to-year drop was the largest since November 2007, amounting to a year-to-date sales drop of 12.9 percent.
"As we predicted, May home sales took the full impact of the coronavirus pandemic as much of the state remained in lockdown during the past few months and caused three straight months of double-digit sales declines, which we haven't experienced since the association began reporting monthly home sales in 1979," said C.A.R. senior vice president and chief economist Leslie Appleton-Young.
Home prices softened further last month, sending the statewide median home price below last year's price for the first time since February 2012. This broke the state's 98-month year-over-year price gain streak. The May statewide median price of $588,070 for single-family homes in the state was down 3 percent from April and down 3.7 percent from May 2019, when the median price was a revised $610,940.
In Santa Clara County, sales of single-family homes in May were down 51 percent from the previous year and down 12 percent from the previous month. Santa Clara County's May median sales price of $1,365,000 was 2.2 percent higher than the May 2019 median price of $1,335,000 and 1.7 percent below the April 2020 median of $1,388,890.
In their monthly Aculist Market Minute report of Santa Clara County's housing market, MLSListings Director of Professional Development Mark Messimer and senior product marketing manager with MLS subsidiary Aculist Michelle Ronco explained Santa Clara County's May housing market was not a complete drop-off, but merely an adjustment to the pandemic conditions.
"The market just re-adjusted itself to the new conditions and we'll see it come back," said Messimer.
Ronco noted while the county's month-to-month median sales price was down due to the pandemic, the May median price of $1,365,000 was higher than any time last year. In fact, Santa Clara County has had year-over-year price appreciation.
Ronco said a bright spot is the county's overall sales-to-list price ratio for May was at 101 percent, which is healthy. Another bright spot in May was the number of new listings in the county hit 1,045, the highest all year.
"The county's month-over-month increase in listings is the big story. It's positive news moving forward for people considering selling or buying. It's a sign that the market is heating back up and continues to be strong," said Mary Kay Groth, president of the Silicon Valley Association of Realtors.
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.
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