Bay Area home sales rose above a year ago for the fifth consecutive month in January, according to a real estate information service. Sales were especially robust in many inland areas where steep price declines have boosted affordability and, in some cases, driven sales of existing houses to record levels.
MDA DataQuick reported foreclosures represented 54 percent of Bay Area homes that resold last month. Discounted foreclosures have helped fuel the surge in resale activity, making it more difficult for builders to compete with resale prices.
A total of 5,050 new and resale houses and condos closed escrow in the nine-county Bay Area in January, up 40.8 percent from the same period last year. Re-sales of single-family detached houses hit record levels last month in San Pablo, Richmond, Pittsburg, Antioch, Oakley and Fairfield - areas that have attracted bargain hunters with their relatively large price drops and abundant foreclosures.
The median price paid for all new and resale houses and condos combined in the nine-county Bay Area fell to $300,000 last month, down 9.1 percent from $330,000 in December and down a record 45.5 percent from $550,000 in January 2008.
Julia Truesdale Keady, president of the Silicon Valley Association of REALTORS®, and a REALTOR® with Alain Pinel Realtors in Palo Alto, said as home prices decline, homes are becoming more affordable in the Bay Area, as well as the state of California.
"Recent decreases in home prices and mortgage rates have brought affordability into better alignment with income levels of the typical California households," said Keady. "For serious homebuyers with good credit and stable income, now is a very good time to buy a home."
The California Association of REALTORS® recently announced the percentage of households that could afford to buy an entry-level home in California stood at 59 percent in the fourth quarter of 2008, compared with 33 percent for the same period a year ago
In the Bay Area, MDA DataQuick reported the January median sale price stood at its lowest since it was $299,000 in December 1999. The median price reflects a shift toward more sales in the less-expensive inland markets, slower high-end sales, and buyers' preference for lower-priced foreclosures.
There were 1,037 homes sold in Santa Clara County in January 2009, up 19.3 percent from the same period last year. The median price dropped 37.40 percent, from $639,000 in January 2008 to $400,000 in January of this year. Foreclosure re-sales accounted for 45.6 percent of all homes sold. In the other eight counties, January foreclosure re-sales were as follows: Alameda, 51.9 percent; Contra Costa, 64.4 percent; Marin, 26.2 percent; Napa, 48.1 percent; San Francisco, 16.4 percent; Santa Clara, 45.6 percent; San Mateo, 34.1 percent; Solano County, 75.2 percent; Sonoma, 55.6 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.