The California Association of REALTORS® reported this week that the state's housing market continued to show signs of improvement in June. California home sales experienced solid gains annually and home prices reached their highest level since August 2010. Lack of inventory, however, continues to slow some markets.
Closed escrow sales of existing, single-family detached homes in California fell 8.6 percent from May's revised 567,330 to 518,460 in June. June home sales rose 8.5 percent from the revised 478,040 pace in June last year.
The state median home price posted both month-over-month and year-over-year gains for the fourth consecutive month. The June median price of $320,540 for an existing, single-family detached home was up 1.3 percent from $316,410 in May and 8.1 percent from $296,410 in June 2011. The June 2012 figure was 30.7 percent higher than the state's bottom of $245,230 in February 2009.
June home sales in Santa Clara County did not mirror the upward trend in other parts of the state. According to the C.A.R. data, home sales were down 10.9 percent from May and down 5.8 percent from June 2011. Neighboring San Mateo County's home sales, on the other hand, increased 4 percent from the previous month and rose 3.8 percent from the previous year.
The median home price for an existing, single-family detached home continues to edge up each month for both counties. The June median price of $695,000 in Santa Clara County was 8 percent higher than median of $643,500 in May, and was 11.6 percent higher from the June 2011 median of $623,000. The June median home price in San Mateo County was $825,000, up 6.5 percent from $775,000 in May and up 12.2 percent from $735,000 in June 2011.
With low inventory, REALTORS® report many homes are receiving multiple offers, which in turn raise the median sales price. In some places, though, the lack of supply has triggered a drop in sales, said Suzanne Yost, president of the Silicon Valley Association of REALTORS®.
The combination of low inventory and strong home buyer interest is good news for some homeowners who have equity in their homes and have been waiting to put their home on the market. On the other hand, the situation has been frustrating for first-time home buyers who have to compete with all-cash investors who are able to bid up prices.
"Many families are already having a difficult time finding a place to live. Unless inventory opens up, home buyers will continue to be squeezed in this tight market and we will continue to see first-time home buyers facing strong competition from investors with cash," said Yost.
According to C.A.R.'s Unsold Inventory Index for existing, single-family detached homes, Santa Clara County's June housing inventory was at two months, down from 3.2 in June 2011. San Mateo County's June inventory, also at 2.1 months, was down from 3.5 months in June of last year. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. California's June housing inventory was 3.5 months. A 7-month supply is considered normal for the state.
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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