California home sales climbed to their highest level in more than two and a half years in July and median home prices set another record-high median home price. These are signs that the state's housing market is continuing to recover from the shocking turn it in mid-March due to the COVID-19 pandemic, according to the California Association of Realtors. All nine counties in the San Francisco Bay Area region saw July sales jump month-over-month and year-over-year.
Closed sales of existing, single-family homes in California totaled 437,890 units in July, an increase of 28.8 percent from June sales and up 6.4 percent from a year ago. July marked the first time in five months that home sales posted an annual gain, according to the state Realtor group.
"A housing market trifecta of strong pent-up demand, record-low interest rates and a renewed interest in the value of homeownership bolstered July's home sales," said 2020 C.A.R. President Jeanne Radsick. "With this year's delayed start of the homebuying season due to the pandemic, we expect home sales to remain robust in August and September, extending the season later than what's typical."
The statewide median home price reached $666,320 in July, jumping 6.4 percent from June's $626,170 and 9.6 percent from $607,990 in July 2019. The monthly price increase was the highest ever recorded for a June-to-July change.
July sales of higher-priced properties continued to outpace sales of lower-priced homes.
Homes priced below $500,000, which made up 44 percent of total sales in the California market in June, only comprised 40 percent of all sales last month. On the other hand, sales of million-dollar properties increased in market share to 20.4 percent compared with 18 percent in June.
"Stronger sales of higher-priced properties continue to propel the statewide median home price, as those who tend to purchase more expensive homes are less impacted by the economic recession," said C.A.R. senior vice president and chief economist Leslie Appleton-Young.
"High demand in resort communities is another variable that's fueling the increase in home prices, as a new wave of remote workers are leaving cities in search of more space and a healthier lifestyle in what used to be the second/vacation home market."
Sales increased in all major regions from last year and were particularly strong in the Central Coast region, which posted a 22 percent gain. Sales increased 14.8 percent in the San Francisco Bay Area region. Median home prices increased in all regions in July, with both the Central Coast and San Francisco Bay Area climbing more than 10 percent from last year.
C.A.R. reports Santa Clara County July home sales jumped 18.5 percent from the previous month, and were up 12.5 percent from July 2019. The county median home price of $1,380,000 slipped 0.1 percent from June's median of $1,382,000 and was 6.3 percent higher than the median price of $1,298,000 in July last year.
"We're experiencing market activity that we normally receive in the spring. At our virtual district meetings, our Realtor members are describing our market as a 'screaming sellers' market,'" said Mary Kay Groth, president of the Silicon Valley Association of Realtors.
According to MLSListings, the local association's multiple listing service provider, Santa Clara County's sales-to-price ratio was at 102 percent, and even with limited inventory, the average days on market was at 10 days in July, one day less than in June, and down from 14 days last year.
"These are important indicators that sellers are receiving asking or a little above their asking price, and that even in a pandemic, homes are selling quickly in Santa Clara County," said Groth.
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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