The California Association of REALTORS® (C.A.R.) reports home sales in California were up 2.5 percent in April compared with the same period a year ago. The median price of an existing home, however, fell 32 percent.
"Home sales registered a 2.5 percent year-to-year gain compared with April 2007, ending a 30-month string of year-to-year percentage decreases that began in October 2005," said C.A.R. President William E. Brown. "This is not to say that the credit crunch that has contributed to the sales decline has disappeared. Both tighter underwriting standards and the ongoing effects of the credit/liquidity crunch continue to constrain sales."
Closed escrow sales of existing, single-family detached homes totaled 366,720 in April at a seasonally adjusted annualized rate, according to information collected from more than 90 local Realtor associations statewide. Statewide home resale activity increased 2.5 percent from the same period last year.
The median price of an existing, single-family detached home in California during April 2008 was $403,870, a 32 percent decrease from the revised $594,110 median for April 2007. The April 2008 median price fell 2.6 percent compared with March's revised $414,640 median price.
"Significant price declines are spurring home sales to bargain hunters and first-time buyers at the middle- and low-end of the market, especially in areas with a concentration of distressed properties," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.
The median number of days it took to sell a single-family home was 52.1 days in April 2008, compared with 53.1 for the same period a year ago.
The main constraints on market activity at this time are tighter underwriting standards and the lack of funds available for loans because of the liquidity crunch, according to Silicon Valley Association of REALTOR® President Leannah Hunt.
"The credit/liquidity crunch also increased the spread between conforming and jumbo loan rates," said Hunt. "The lack of available funds for loans, even for qualified buyers, continues to keep the demand side of the market thin in some parts of Santa Clara County, and enables buyers with financing (or all cash) to exert leverage over the sellers."
Overall, the median price for all types of home sales — new and existing, condos and single-family in Santa Clara County in April was $629,500, down 12 percent from a year ago. The median home price in Saratoga, Los Gatos and Cupertino significantly increased, placing these cities among the top statewide with the highest median home price. Los Gatos and Cupertino were also among the top 10 cities and communities that had the greatest median home price increase in April.
Statewide, the 10 cities with the highest median home prices during April were: Saratoga, $1,480,000; Manhattan Beach, $1,372,500; Los Gatos, $1,335,000; Santa Barbara, $1,067,500; Cupertino, $918,500; San Carlos, $885,500; Danville, $829,000; Redwood City, $817,500; San Clemente, $809,500; Santa Monica, $780,000.
Statewide, the cities with the greatest median home price increases in April compared with the same period a year ago were: Los Gatos, 11.3 percent; Yorba Linda, 6.6 percent; Carlsbad, 3.6 percent; Cupertino, 2.1 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.
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