A real estate information service has reported Bay Area home sales dropped below 4,000 transactions for the first time in over 20 years in January due to the credit crunch and uncertainty among buyers, sellers and lenders. But Realtors see these conditions as providing a window of opportunity for those interested in buying a home in the Bay Area.
A total of 3,586 new and resale houses and condos sold in the Bay Area in January 2008, down 29.2 percent from December, and down 41.9 percent January 2007, DataQuick Information Systems reported. January's sales were the lowest for any month in DataQuick's statistics, which go back to 1988. The average for the month is 6,319 sales.
The median price paid for a Bay Area home was $550,000 in January 2008, down 6.4 percent from $587,500 in December, and down 8.5 percent from $601,000 in January 2007. Home sales and the median home price in all counties in the Bay Area declined, with the exception of Marin County, where the median home price of $845,000 was up 1.8 percent from the pervious year. Price declines steepened, especially in inland markets hit hard by foreclosures, according to the report.
In Santa Clara County home sales decreased nearly 46 percent compared with the same period last year and the median home price was pegged at $639,000, down 3.2 percent from January 2007, when the median was $660,000.
Silicon Valley Association of REALTORS® President Leannah Hunt said the Silicon Valley region is one of the areas in the state that appears to be insulated from much of the state's housing market troubles. Demand in the area continues to be strong, and as long as homes are priced right, multiple offers still occur, according to Hunt, who is a Realtor with Coldwell Banker in Palo Alto.
Data from MLSListings Inc, SILVAR's Multiple Listing Service, reveals the median price in most of the association's five districts (Menlo Park/Atherton, Palo Alto, Los Altos/Mountain View, Los Gatos/Saratoga, and Cupertino/Sunnyvale) increased in comparison to last year. Inventory was also up in Los Gatos, Mountain View and Sunnyvale in January compared to the prior year.
"Serious buyers should take advantage of current market conditions. With interest rates still low, there is a window of opportunity that doesn't come very often, so if you are serious about purchasing a home, it is a good time to do so," Hunt said.
Hunt said micro-markets exist everywhere, even in Silicon Valley. She recommends buyers and sellers to seek the advice of a Realtor, who can present a true picture of local market conditions.
"Whether buying or selling a home, you should seek the assistance of a skilled Realtor who can negotiate for you, who is experienced and can give you the right information about market conditions in your area," said Hunt.
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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