The California Association of REALTORS® reports California home sales increased 2.1 percent in September compared with the same period a year ago, as the median price of an existing home dropped 7.3 percent. Saratoga, Los Altos, Los Gatos and Cupertino ranked among the top 10 cities with the highest median home price for the month of September.
Real estate officials attribute the market's momentum to first-time home buyers who took advantage of the $8,000 federal tax credit. "The success of the federal tax credit is clear," said C.A.R. president James Liptak. "Nearly 70 percent of first-time home buyers report that the tax credit was 'the most important' or a 'very important' factor in their decision to buy a home."
C.A.R. Vice President and Chief Economist Leslie Appleton-Young said, "Efforts by the government to stimulate housing and the economy clearly are impacting the market."
Sales have exceeded 500,000 homes for 13 consecutive months, and now are 33.1 percent higher on a year-to-date basis compared with 2008, she said.
Closed escrow sales of existing, single-family detached homes in the state totaled 530,520 in September, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 2.1 percent from the sales pace recorded in September 2008.
The median price of an existing, single-family detached home in California during September was $296,090, a 7.3 percent decrease from the revised $319,310 median for September 2008. The September 2009 median price rose 1.1 percent compared with August's $292,960 median price.
Statewide, the 10 cities with the highest median home prices in California during September 2009 were: Manhattan Beach, $1,502,000; Burlingame, $1,401,100; Saratoga, $1,297,500; Los Altos $1,275,000; Palos Verdes Estates, $1,163,500; Calabasas, $1,073,500; Newport Beach, $1,050,000; Los Gatos, $1,050,000; Santa Monica, $1,025,000; Cupertino, $950,000; and Rancho Palos Verdes, $912,500.
In Santa Clara County, the September median home price was $450,000, down 13.7 percent from $521,250 a year ago. Cupertino and Mountain View were among 65 of the 406 cities and communities that showed an increase in their respective median home prices from a year ago. The Cupertino September median home price of $950,000 was up 3.3 percent from September 2008. The median price of a Mountain View home was $704,500, up 6.3 percent from September 2008.
"First-time home buyers who have decided to jump off the sidelines and take advantage of the federal tax credit are giving the market the boost it needs for a recovery, but the market could lag again once the credit ends on November 30," said Silicon Valley Association of REALTORS® president Julia Truesdale Keady. "It's important that Congress realize this and extend and expand the credit to all home buyers."
Keady said REALTOR® members of the local, state and national trade associations are calling for the U.S. Senate to swiftly adopt the Dodd-Lieberman-Isakson amendment, which would extend the federal tax credit through June 30, 2010, remove the first-time buyer requirement and extend the credit to all home buyers, and increase the qualifying income limits so more families are eligible for the credit.
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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