A real estate information service reports an estimated 29,225 new and resale houses and condos were sold statewide in February, up 42.5 percent February 2008. Sales have increased on a year-over-year basis the last eight months. Of the existing homes sold last month, 58.4 percent were properties that had been foreclosed on; a year ago, it was 33.3 percent, according to MDA DataQuick.
The median price paid for a home last month was $224,000, unchanged from the month before, and down 39.9 percent from $373,000 for February a year ago. Around half of the drop in the median is due to price depreciation, while the other half is due to shifts in the types of homes selling, and how those homes are financed.
The typical mortgage payment that California home buyers committed themselves to paying last month was $976, down from $1,774 for February a year ago. The typical mortgage payment has not been below $1,000 since May of 1999. Adjusted for inflation, last month's mortgage payment was the lowest in DataQuick's statistics, which go back to 1988.
MDA DataQuick also disclosed home sales in the Bay Area region beat the year-ago mark for the sixth straight month in February, as the median price dipped below $300,000 for the first time since late 1999. A total of 5,032 new and resale houses and condos closed escrow in the nine-county Bay Area last month, up 26.1 percent from 3,989 in February 2008.
Across the nine-county Bay Area region, the median price paid for all new and resale houses and condos combined fell to $295,000 last month, down a record 46.2 percent from $548,000 a year ago. In the Bay Area region, the typical monthly mortgage payment buyers committed themselves to paying was $1,286 last month, down from $1,297 the previous month, and down from $2,606 a year ago.
"Real estate is local, so buyers need to consult a REALTOR® who is familiar with the market conditions in their area," said Julia Truesdale Keady, president of the Silicon Valley Association of REALTORS®.
Keady, who is a REALTOR® with Alain Pinel Realtors in Palo Alto, said it's important too that sellers seek the advice of a REALTOR® to help them price their home right, especially at during these times. "Sellers often receive the most buyer inquiries and interest the first few weeks their house is placed on the market. As time passes, more properties come on the market and interest fades. This is why it's very important to price your home right the first time it is listed."
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.