Home sales decreased 40.2 percent in October in California compared with the same period a year ago, while the median price of an existing home fell 9.9 percent, the California Association of REALTORS® (C.A.R.) recently reported. Amid the statewide plunge in sales, communities like Santa Clara County and other parts of the Bay Area continue to do well.
C.A.R. President William E. Brown explained the decline in statewide sales at the upper end of the market contributed to a significant decline in the statewide median price as even well-qualified borrowers had difficulty securing financing.
"Financing issues have dogged entry-level buyers since early 2007, but they spilled over into the middle and upper-tier markets in the last few months," said Brown.
California's home resale activity decreased 40.2 percent from the 443,320 sales pace recorded in October 2006, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide.
The median price of an existing, single-family detached home in California during October 2007 was $497,110, a 9.9 percent decrease from the revised $552,020 median for October 2006, C.A.R. reported. The October 2007 median price fell 6.4 percent compared with September's $530,830 median price.
"We expect further weakness in sales over the next few months as the liquidity crisis plays out," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Both the state and national economies remain fundamentally sound at this time, despite recent developments in the housing market. While there have been mixed signals in recent months, economic growth is expected to continue into 2008."
The market in Santa Clara County, however, still appears healthy, as home sales increased in October 2007 compared with the prior month. According to data provided by MLSListings Inc., the multiple listing service for Santa Clara County, the sales of single family homes increased from 523 in September 2007 to 575 in October 2007. Sales of condominiums/townhomes also increased from 190 in September to 227 in October. Sales of single family homes were up in Campbell, Cupertino, Los Altos, Los Gatos Mountains, Monte Sereno, Mountain View, Palo Alto, San Jose and Sunnyvale.
Cupertino and Los Gatos were among the cities with the highest median price during the month of October. Statewide, the 10 cities and communities with the highest median home prices in California during October 2007 were: Newport Beach, $1,575,000; Santa Barbara, $1,275,000; Cupertino, $1,033,000; Danville, $1,017,500; Los Gatos, $1,005,000; San Carlos, $927,500; Redwood City, $912,000; San Ramon, $835,000; San Clemente, $832,500; and San Mateo, $829,500.
Statewide, the 10 cities and communities with the greatest median home price increases in October 2007 compared with the same period a year ago were Santa Barbara, 24.4 percent; Arcadia, 21.3 percent; Redwood City, 20.6 percent; Newport Beach, 18.4 percent; San Ramon, 14.4 percent; Cupertino, 11.7 percent; San Carlos, 9.5 percent; Redlands, 8.8 percent; Redondo Beach, 8.7 percent; and Sunnyvale, 7.6 percent.
MLSListings Inc also shows sales in the third quarter of 2007, when compared with the same period last year, actually increased in Los Gatos from 65 to 77; Saratoga, 76 to 86; Sunnyvale, 164 to 172; and Campbell, 50 to 75. The market held its own in Monte Sereno, Cupertino and Mountain View, with sales staying the same or down by five or less compared with the third quarter of 2006.
Highlights of C.A.R.'s resale housing figures for October 2007:
• C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in October 2007 was 16.3 months, compared with 6.4 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
• Thirty-year fixed-mortgage interest rates averaged 6.38 percent during October 2007, compared with 6.36 percent in October 2006, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.68 percent in October 2007 compared with 5.56 percent in October 2006.
• The median number of days it took to sell a single-family home was 59.3 days in October 2007, compared with 56.5 days for the same period a year ago.
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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