Home sales increased 63.8 percent in March in California compared with the same period a year ago, while the median price of an existing home declined 39 percent, the California Association of Realtors reported this week.
"The March sales figure of 522,980 homes indicates that the market continues to be very active," said C.A.R. President James Liptak.
Closed escrow sales of existing, single-family detached homes in California totaled 522,980 in March at a seasonally adjusted annualized rate.
The median price of an existing, single-family detached home in California during March 2009 was $253,040, a 39 percent decrease from the revised $414,520 median for March 2008. The March 2009 median price rose 2.2 percent compared with February's $247,590 median price.
"The statewide median price showed the first monthly increase since August 2007, and has remained in the $250,000 range over the past three months," said C.A.R.'s Chief Economist Leslie Appleton-Young. "A number of regions around the state also have registered monthly gains for one or more months since the beginning of this year. While these are welcome signs, it remains to be seen whether home prices have stabilized.
"While we still face continued weakness in the general economy and expect continued foreclosures, the increased incidence of multiple offers indicates that first-time home buyers and investors are responding to dramatically improved housing affordability. Low mortgage rates and house prices, coupled with the federal first-time home buyer tax credit, is having a definite impact on the California housing market," Appleton-Young added.
In Santa Clara County, the March median price of all types of home sales — new and existing, condos and single-family - was $405,000, down 40 percent from the same period last year and sales increased 23.6 percent from March 2008.
As is the case around the state, the gains in Santa Clara County are being driven in part by large shares of deeply discounted distressed sales in certain parts of the county, according to Julia Truesdale Keady, president of the Silicon Valley Association of Realtors.
Keady noted, there are good opportunities for buyers right now. "With lower prices and favorable interest rates, affordability has improved significantly in recent months. Lower prices and higher loan limits both have had a positive impact on closed sales, while tighter underwriting standards and higher down payment requirements have had a negative impact," Keady said.
The C.A.R. report disclosed statewide the 10 cities with the highest median home prices in California during March 2009 were: Santa Monica, $755,000; Danville, $738,500; Santa Barbara, $735,000; Mountain View, $700,000; Redondo Beach, $630,000; San Ramon, $621,000; San Clemente, $620,000; San Francisco, $617,000; Santa Cruz, $610,000; and Yorba Linda, $561,500.
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.