The California Association of REALTORS® (C.A.R.) reported home sales in California decreased 27.8 percent in August compared with the same period a year ago, while the median price of an existing home increased 2 percent. C.A.R. officials attribute the decline in sales to a credit or liquidity crunch that began in July.
According to C.A.R. Vice President and Chief Economist Leslie Appleton-Young, "The credit crunch emerged as uncertainty about the extent of the subprime problem drove investors across the globe to turn off the tap of funds to lenders in mortgage and other credit market segments. With credit drying up, even qualified buyers were unable to receive funding for home purchases."
Appleton-Young predicted the impact of the credit crunch will continue to negatively affect sales this year.
C.A.R. reported the median price of an existing, single-family detached home in California during August 2007 was $588,970, up 2 percent over the revised $577,300 median for August 2006. The August 2007 median price increased 0.5 percent from July's $586,030 median price.
Prices declined in 11 regions last month, but the picture was slightly different in the San Francisco Bay region, where the median home price continued to increase. The August median price for the San Francisco Bay region was at $832,760, up 9.9 percent. The Central Valley and Sacramento regions were hit hard with an 11.5 percent and a 12.1 percent drop in median home price, respectively.
Silicon Valley's housing market, however, continues to fare well with strong sales and a median home price that continues to increase. The median home price for Santa Clara County was $715,000, an increase of 5.2 percent from the prior year.
Information from RE InfoLink, the county's local MLS, shows in the month of August there were 39 single family homes sold in Palo Alto, 33 in the Los Gatos area, 34 in Saratoga, 30 in Mountain View, 32 in Cupertino, 28 in Los Altos, 10 in Los Altos Hills and 58 in Sunnyvale. In Santa Clara County, the average days on market increased just slightly by 11 days, from 29 days in August 2006 to 40 days in August 2007.
Statewide, the median number of days it took to sell a single-family home was 55.5 days in August 2007, compared with 50.9 days (revised) for the same period a year ago.
Statewide, the 10 cities and communities with the highest median home prices in California during August 2007 were: Los Altos, $1,815,750; Manhattan Beach, $1,700,000; Saratoga, $1,620,000; Newport Beach, $1,550,000; Burlingame, $1,505,000; Palos Verdes Estates, $1,450,250; Calabasas, $1,330,000; La Canada/Flintridge, $1,317,500; Coronado, $1,315,000; Los Gatos, $1,255,000.
Statewide, the 10 cities and communities with the greatest median home price increases in August 2007 compared with the same period a year ago were: West Hollywood, 35.8 percent; Los Gatos, 35.7 percent; Encinitas, 27.7 percent; Los Altos, 26.2 percent; San Carlos, 21.9 percent; Los Angeles, 20.9 percent; Newport Beach, 18.3 percent; Burlingame, 18.3 percent; Cupertino, 17.4 percent; Novato, 17 percent; Santa Monica, 16.8 percent.
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.
For further information, please email or call the SILVAR office at (408) 200-0100.