The local housing market continues to show improvement in sales and value of homes, though overall home sales in the nine-county Bay Area and the state as a whole, showed mixed results during the month of April, according to latest real estate sales and price reports.
MDA DataQuick reports sales for all new and re-sale homes and condos in Santa Clara County rose 3.10 percent in April compared with the same period last year. A total of 1,656 homes sold in April, up from 1,606 homes sold in April 2009. The median home price for all homes jumped 20.70 percent from $405,000 in April of 2009 to $489,000 this year. The jump in median price is attributed to increasing sales in the higher-end market in comparison to last year.
"Sales activity in the high-end market appeared sluggish around this time last year, but there is more activity in this price range this year because high-end financing has loosened a bit and the government tax credits may have provided the additional incentive for buyers to make their move," said Jeff Bell, president of the Silicon Valley Association of REALTORS®. "Sales could be stronger if financing eases for buyers in the high-end market."
Sales in the nine-county Bay Area fell slightly below the year-ago level, as increased high-end activity couldn't offset sales declines in the lower-cost areas and in the new-home market. However, the continued shift toward a greater portion of sales occurring in higher-cost coastal communities helped the region's median sale price rise nearly 22 percent from last year. In April, 7,003 homes closed escrow in the Bay Area, up 0.2 percent from March but down 1.9 percent from April 2009. Buyers paid a median $370,000 for all new and resale houses and condos that sold in April, down 2.6 percent from $380,000 in March, but up 21.7 percent from $304,000 in April 2009.
Thirty-five percent of the homes sold in the Bay Area were priced $500,000 or above, up 27 percent from a year ago. Mortgages above the old conforming loan limit of $417,000 made up nearly 32 percent of all Bay Area home purchase loans. Foreclosure resales accounted for 29.5 percent of the Bay Area's resale market, the lowest since May 2008.
The local and regional housing market picture mirrors that of the state. The California Association of REALTORS® reports home sales in California fell 8.1 percent in April compared with the same period last year, while the median price of an existing home rose 21 percent, from $253,110 April 2009 to $306,230 in April 2010.
California Association of REALTORS® President Steve Goddard speculates activity might have been delayed until at least May, as buyers decided to take advantage of new state tax credits that became effective May 1.
"We should see the pace of closed sales edge up in May and June as these tax-incentivized transactions close," Goddard said.
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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