The California Association of REALTORS® reports home sales decreased 11.7 percent in February compared with the same period a year ago, while the median price of an existing home rose 14.1 percent.
"Although sales have declined from the unusually strong levels we experienced a year ago, they've remained above the 500,000 unit threshold for 18 consecutive months, while home prices continue to firm in the regions of the state most attractive to buyers taking advantage of today's favorable market conditions," said C.A.R. President Steve Goddard.
Closed escrow sales of existing, single-family detached homes totaled 528,930 in February. Statewide home resale activity decreased 11.7 percent from the revised 598,770 sales pace recorded in February 2009. Sales in February 2010 were down 2.2 percent compared with the previous month.
The median price of an existing, single-family detached home in California during February was $279,840, a 14.1 percent increase from the revised $245,230 median for February 2009. The February 2010 median price decreased 2.4 percent compared with the $286,600 median price of the previous month.
C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in February 2010 was 6.3 months, compared with 7.1 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate. The median number of days it took to sell a single-family home was 41.2 days in February 2010, compared with 51.4 days for the same period a year ago.
Jeff Bell, president of the Silicon Valley Association of REALTORS®, said the federal tax credit for home buyers, low mortgage rates, and affordability at record levels all contributed to an unprecedented opportunity for many first-time home buyers to purchase a home. Although the federal tax credit of $8,000 for first-time home buyers and $6,500 for repeat buyers expires on April 30, there remain good opportunities in the current market for buyers, Bell said.
"We still have very low interest rates and relatively low prices," said Bell, who is a REALTOR® with Coldwell Banker in Cupertino.
Thirty-year fixed-mortgage interest rates averaged 4.99 percent during February 2010, compared with 5.13 percent in February 2009, according to Freddie Mac. Adjustable-mortgage interest rates averaged 4.23 percent in February 2010, compared with 4.87 percent in February 2009.
In terms of home sales and median sales price, the Santa Clara County is faring better than most parts of the state. The median price was $460,000 in February, up 9.5 percent from $420,000 the same time a year ago. Of the cities reporting, those with the highest median price increase in February compared with the previous year were Sunnyvale, up 25.2 percent to $609,500; Gilroy, 13.3 percent to $385,000; and Mountain View, 11.7 percent to $637,500.
In a separate report covering more localized statistics, 194 of the 350 cities and communities reporting showed an increase in their respective median home prices from a year ago. Statewide, the 10 cities with the highest median home prices during February 2010 were: Newport Beach, $1,000,000; Santa Monica, $781,250; Danville, $755,000; Santa Barbara, $725,000; San Clemente, $685,000; Pleasanton, $650,000; Mountain View, $637,500; San Francisco, $637,441; Redondo Beach, $615,000; and Sunnyvale, $609,500.
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.