The California Association of REALTORS® reports California home sales rose in December, posting their highest level since May. The statewide median price was still down from a year ago, but increased from the previous month.
"December's sales increase reflects buyers taking advantage of rock bottom interest rates and improved affordability since the first half of the year, when prices were higher," said C.A.R. president Beth L. Peerce. "Rates hit their absolute lowest in October, but began edging higher in November, prompting buyers to get off the fence."
Closed escrow sales of existing, single-family detached homes in California totaled 520,680 in December, according to information gathered by C.A.R. from more than 90 local REALTOR® associations statewide. December's sales were up 5.9 percent from November's revised pace of 491,590, but they were down 6.8 percent from the revised 558,840 sales pace recorded in December 2009.
Following three consecutive monthly declines, the median price of an existing, single-family detached home sold in California increased 1.7 percent from a revised $296,690 in November, but was down 1.6 percent from the revised $306,860 median price recorded for the same period a year ago.
"While sales rose in December, the sales pace in the second half of the year was lower than the first half as the housing market weaned itself off home buyer tax credits," said C.A.R. vice president and chief economist Leslie Appleton-Young. "For 2010 as a whole, sales reached 494,900 homes sold, down 9.5 percent from the 546,860 homes sold in 2009. However, the statewide median price increased 10.2 percent to reach $302,900 for the year, up from the $275,000 recorded in 2009," Appleton-Young explained.
For its part, Santa Clara County is "heading in the right direction," according to Gene Lentz, president of the Silicon Valley Association of REALTORS®. December sales of existing, single-family detached homes were up 11.2 percent from November, though down 5.3 percent from December 2009. The median price of a single-family detached home in the county in December was $560,000, down 5.1 percent from the previous month's median of $589,980, but unchanged from December 2009.
.Lentz is optimistic about 2011. "I think it will be a better year than 2010. Our agents report multiple offers in many price points, especially at the lower end," Lentz said. "Inventory right now is relatively low and could be a determining factor of how the market performs in the next few months. Interest rates have gone up slightly, but they are still low when even compared to last year."
Thirty-year fixed-mortgage interest rates averaged 4.71 percent during December 2010, compared with 4.93 percent in December 2009, according to Freddie Mac. Adjustable-mortgage interest rates averaged 3.31 percent in December 2010, compared with 4.31 percent in December 2009.
The median number of days it took to sell a single-family home was 57.5 days in December 2010, compared with 35.1 days for the same period a year ago. Los Altos, Cupertino and Los Gatos were again among the top cities with the highest median home price during December. Statewide, the 10 cities with the highest median home prices in California during December 2010 were: Beverly Hills, $2,180,000; Los Altos, $1,300,000; Calabasas, $1,175,000; Laguna Beach, $1,105,000; Manhattan Beach, $1,085,500; Newport Beach, $1,000,000; Santa Monica, $921,000; Cupertino, $904,500; Rancho Palos Verdes, $849,000; Los Gatos, $840,000.
"We're entering 2011 with lots of momentum. We still have small pockets of distressed sales in the Valley, but they are few compared to other parts of the state," said Lentz. "The home buyer tax credits helped drive the market last year. This year, we are optimistic it will continue to stabilize on its own."
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.
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