Even as housing affordability continued to improve throughout the state of California in the first quarter of 2011, it appears buyers were hesitant to make a move. The California Association of REALTORS® reports statewide home sales declined in April, while home prices increased.
The percentage of buyers who could afford to purchase a median-priced, single-family home in California rose to 53 percent in the first quarter of 2011, up from 50 percent in fourth-quarter 2010 and 50 percent in first- quarter 2010, according to C.A.R.'s Traditional Housing Affordability Index. The index is considered the most fundamental measure of housing well-being for home buyers in the state.
In Santa Clara County, affordability was at 37 percent in the first quarter of this year, up from 33 percent in the previous quarter and 34 percent in the first quarter of 2010.
April, however, was a slow month in terms of statewide home sales. Information collected from more than 90 local REALTOR® associations and MLSs statewide shows closed escrow sales of existing, single-family detached homes in totaled 499,830 units in April, down 2.9 percent from March, but up 5 percent from the April of 2010.
In the Bay Area region, sales were up 1.2 percent from April of 2010, but down 3.2 percent from March of this year. Data varied depending on location. Napa County saw existing home sales rise 19.8 percent from April of 2010, but experienced no change in sales from the prior month. Santa Clara County's housing market saw April 2011 sales of existing, single-family homes rise 2.3 percent from April 2010 and increase 4.3 percent from March of this year.
The statewide median price of an existing, single-family detached home sold in California rose 2.5 percent in April to $293,570, up from $286,510 in March. April's median price was down 4.4 percent from the $307,000 recorded in April 2010. Similarly, in the Bay Area, the median price of $490,670 in April was up slightly 0.8 percent from March, but down 8.8 percent from April 2010. In Santa Clara County, the median price of an existing, single-family detached home in April was $585,000, up 4.2 percent from the March median of $561,500, but down 6.8 percent from the median of $628,000 in April 2010.
Despite the statewide drop in sales of existing single-family homes in April, REALTOR® officials do not expect prices to take a dive. "An improving economy, coupled with the steady pace of distressed sales in the market and the typical seasonal pattern in the median home price, suggests the statewide median price has reached its low point for this year and is unlikely to hit the bottom reached in February 2009," said C.A.R. president Beth Peerce.
"Affordability has improved in the Silicon Valley region, which continues to be a prime location in the state. The market in the region is stabilizing, but the cost of home ownership is expected to rise later this year when the conforming loan limit in high-cost areas is reduced. This could impact buyers looking for homes in high-cost areas," said Gene Lentz, president of the Silicon Valley Association of REALTORS®.
The high conforming loan limit, which was extended to $729,750 in high-cost areas, will end on September 30.
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.