The California Association of Realtors reports California's housing market rebounded in June after falling to its lowest level since the Great Recession. June saw the largest month-to-month increase in home sales in nearly 40 years, and the median home price set another record high. The San Francisco Bay Area saw a moderate 3.6 percent increase in home prices and a 69.2 percent sales increase from May. Santa Clara County made a major comeback in sales volume, price, and new listings.
Down 12.8 percent from a year ago, June closed sales of single-family homes in California rose 42.4 percent from May. The month-to-month increase was the largest since C.A.R. began reporting monthly sales in January 1979. Meanwhile, the statewide median price set a new record high of $626,170, up 6.5 percent from May and 2.5 percent from June 2019.
"Home sales bounced back solidly in June after hitting a record bottom in May, as lockdown restrictions loosened and pent up demand driven by record-low interest rates roared back," said 2020 C.A.R. President Jeanne Radsick.
According to C.A.R., sales of higher-priced properties bounced back stronger than lower-priced homes. Homes priced below $500,000, which made up 48 percent of total sales in the market in May, only comprised 44 percent of all sales in June. On the other hand, sales of million-dollar properties increased in market share to 18.1 percent compared with 15.6 percent in May.
"A new record high in the statewide median price suggests that there is stronger housing demand from more qualified, affluent buyers in this extremely favorable lending environment," said C.A.R. senior vice president and chief economist Leslie Appleton-Young.
Santa Clara County saw June packed with a higher sales volume and strong prices, according to data from MLSListings presented in the Aculist Monthly Market Minute report by Aculist senior product marketing manager Michelle Ronco. Ronco noted the change in sales volume illustrates the market's recovery. Santa Clara County sales volume in May was barely half (49 percent) of the sales volume in May 2019, then rose steadily in April to 62 percent. By June, sales volume increased to about 98 percent of sales volume in June 2019.
Santa Clara County's median home price reached $1,382,000 in June, up 1.2 percent from May's median of $1,365,000, and up 2.4 percent from the June 2019 median of $1,350,000. Although inventory is down 33 percent year-over year, new listings have increased for two straight months, from 732 in April, to 1,045 in May, and 1,066 in June - a clear sign that sellers are returning to the market. The county's sales-to-list price ratio in June was 101 percent, just one percent lower than a year ago.
Further highlighting the market's rebound are places that experienced month-over-month increased median home prices. These include Saratoga, Los Gatos, Los Altos, Los Altos Hills, Cupertino, Santa Clara, Palo Alto, Sunnyvale, Mountain View. The cities of Los Altos Hills, Mountain View, Sunnyvale, Los Gatos, Cupertino, Saratoga, Santa Clara, San Jose also saw new listings increase from May to June.
"The housing market is making a good recovery which will hopefully continue," said Mary Kay Groth, president of the Silicon Valley Association of Realtors. "The pandemic hasn't stopped buyers. The virtual tours and virtual open houses have appealed to buyers. Traditional open houses are still not allowed, but in-person showings by appointment and limited to just three persons at one time, including the agent, have helped clinch many deals. At our association's Realtor district virtual meetings, our members are reporting multiple offers are taking place on properties that are priced competitively."
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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