Local figures from REInfoLink, the Multiple Listing Service for Santa Clara County and four other California counties, show home sales edging upward for Silicon Valley, even as the National Association of Realtors® (NAR) reports that pending home sales declined in January from a strong upturn in December due to unusual weather patterns.
Information from REInfoLink shows the housing market is picking up in Santa Clara County. There were a total of 661 sales of single family homes in Santa Clara in February 2007, up from 611 in January 2007. The median home price also continued its upward trend, from $740,000 in January to $790,000 in February 2007.
Home sales increased in nearly every community in Santa Clara County and more than doubled their January figure in the cities of Cupertino, which had 31 homes sold in February, up from 13 in January; Los Altos Hills, 9 in February, up from 5 in January; Mountain View, 18, up from 7; Palo Alto, 31, up from 15.
"Santa Clara County continues to buck the trend in home sales. Silicon Valley's economy continues to do well and, in fact, leads the nation in technology," said Silicon Valley Association of Realtors President Mark Burns. "Silicon Valley's strengths lie in its competitiveness and diverse mix in technology, innovation and life science industries. It's home to three of the top universities in the nation, so it's not surprising that people want to live in the Valley."
NAR reports the Pending Home Sales Index, a leading indicator for the housing sector based on contracts signed in January, fell 4.1 percent to an index of 108.7 from an upwardly revised reading of 113.3 in December, and is 8.9 percent lower than January 2006.
David Lereah, NAR's chief economist, said the index has recovered from a low in October.
"We are seeing temporary near-term weather disruptions in much of the country, but there is an underlying pattern of stabilization in the housing market," Lereah said. "As a result of these weather disruptions, it may take a couple months for the picture to fully clarify, but a modest recovery is likely. Housing remains a great long-term investment."
As reported last month, the PHSI for December got a boost from mild weather and showed the largest monthly gain in nearly three years. December's index rose 4.5 percent, the largest increase since a 6.1 percent jump in March 2004.
"The rapid shift in January to frigid air in much of the country had a cooling affect on home shopping that went beyond normal seasonal factors," Lereah explained. "Weather disruptions have continued since."
The index is derived from pending sales of existing homes. A sale is listed as pending when the contract has been signed and the transaction has not closed; pending sales typically are finalized within one or two months of signing.
The PHSI in the Northeast jumped 9.3 percent in January to 101.8 but was 1.3 percent below a year ago. The index in the West rose 0.2 percent to 110.8 but was 7.0 percent below January 2006. In the Midwest, the index was down 2.4 percent in January to 100.1 and was 10.8 percent lower than a year earlier. The index in the South fell 11.7 percent to 116.7 and was 11.8 percent below January 2006.
Burns said Silicon Valley's housing market has always led the state due to the area's unique qualities.
"We're seeing a lot more multiple offers in the area. The higher interest in the housing market has been spurred by a good economy, low interest rates and a high degree of confidence in the economy," said Burns.
Carolyn Miller, a Realtor with RE/MAX in Cupertino and SILVAR's Sunnyvale/Cupertino/Santa Clara District Council Chair, said Cupertino is one of the areas that has consistently had a high demand for housing, said spring is a time when the housing market picks up, but the Santa Clara County housing market has always done well compared to other parts of the state.
"Cupertino, in particular, has an ideal location and the school district is one of the best in the state," said Miller. "Demand is high for housing here because of these assets, and we have a very low inventory right now, so homes that are up for sale are selling quickly. Interest rates are low; it's a very good time to buy a home."
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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