Homes in Santa Clara County and other parts of the Bay Area continue to appreciate, even as a real estate information service reports that home sales in the Bay Area fell for two years in a row in January.
According to DataQuick Information Systems, a total of 6,168 new and resale houses and condos were sold in the nine-county Bay Area last month, down 4.1 percent from a revised 6,434 for January last year. The average January since 1988 has had 6,455 sales. Overall, the median price paid for a Bay area home was a revised $601,000 last month, down 1.5 percent from a revised $610,000 for January last year.
But prospects continue to look bright for some parts of the Bay Area. Although January 2007 home sales in Santa Clara County were down 0.7 percent from the prior year, the median home price of a Santa Clara County home increased by 1.5 percent from the prior year. DataQuick reports 1,606 homes were sold in the county in January 2007, compared with 1,618 homes sold in January 2006. The median home price edged up to $660,000 in January 2007, from $650,000 the year before.
Silicon Valley Association of Realtors® (SILVAR) Mark Burns is not surprised that homes continue to appreciate in Santa Clara County even as the housing market is in a transition.
"One thing is clear - those who have purchased homes in Silicon Valley and held them have made tremendous returns on their investment while providing their families opportunities to attend good schools, work for local employers, and enjoy the great environment we have," said Burns.
Other bright spots in the Bay Area included home sales up 3.5 percent in San Mateo County and median home price increase of 1.4 percent. In January 2007, a total of 499 new and resale houses and condos were sold in San Mateo County and the median home price was pegged at $735,000.
San Francisco was another Bay Area county that showed an increase in home sales and median home price in January, compared with last year's figures. There were 402 homes sold in San Francisco in January 2007, up 8.9 percent from 369 last year. The January 2007 median home price in San Francisco increased 0.7 percent to $750,000, from the January 2006 median price of $745,000.
While home sales dipped 12.9 percent in Marin County, the median home price there increased by 10 percent to $830,000.
DataQuick continues to place indicators of market distress as still being at a moderate level, noting financing with adjustable-rate mortgages as declining slightly; foreclosure activity rising, but is still in the normal range; and down payment sizes stable. Flipping rates and non-owner occupied buying activity are down.
The typical monthly mortgage payment that Bay Area buyers committed themselves to paying was $2,804 last month, down from $2,828 the previous month and down from $2,812 a year ago. Adjusted for inflation, current payments are 11.6 percent above typical payments in the spring of 1989, the peak of the prior real estate cycle.
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.