The California Association of REALTORS® reports December home sales rose to the highest level since January 2011. Sales also were up from a year ago, marking the sixth consecutive annual increase. This news follows the latest report from the New York-based Conference Board that the December consumer confidence surged to its highest level since April of 2011.
"Robust sales over the past few months signal the housing market is treading above water on its own in the first full year without the government stimulus that has helped housing in the last couple of years," said C.A.R. president LeFrancis Arnold.
According to information collected from more than 90 local REALTOR® associations and MLSs statewide, there were 520,940 closed escrow sales of existing, single-family detached homes in California in December, up 3.3 percent from 504,420 in November, and up 0.1 percent from the revised 504,420 sales in December 2010.
The median price of an existing, single-family detached home in California increased for the second consecutive month to $285,920 in December, up 1.8 percent from $280,960 in November. The median price was down 6.2 percent from the median of $304,770 in December 2010.
The housing market is slowly stabilizing, according to REALTOR® officials. "Home prices are stabilizing for the distressed market, where we see robust demand, but we continue to see downward pressure on home prices in some higher end markets," said C.A.R. vice president and chief economist Leslie Appleton-Young.
Santa Clara County saw sales of existing single-family detached homes increase 6.4 percent from the previous month, but sales were down 13.7 percent from December 2010. The median sales price of a single-family home in the county was $535,000 in December, down 4.5 percent from the median price of $560,000 in November 2011 and down 2.4 percent from the December 2010 median price of $548,000.
"Inventory is tight, but we continue to see positive signs for the housing market and the economy. Consumer confidence is up, and we are seeing many indications of growth in our area, especially jobs," said Suzanne Yost, president of the Silicon Valley Association of REALTORS®.
Yost referred to a January article in Forbes magazine that named San Jose, California one of the 10 metro areas ripe for a rebound, citing an anticipated 3.3 percent increase in employment and new home construction in the area up 97 percent in 2011's third quarter compared to the year earlier. Information acquired from Local Market Monitor, a Cary, N.C.-based real estate research firm, indicates there were 234 permits for new single-family homes in the San Jose area, a jump from 119 permits during the same period the previous year. Additionally, the Conference Board recently reported that its Consumer Confidence Index rose to 64.5, up from 55.2 in November, far above expectations.
"Silicon Valley is poised for a robust 2012," said Yost.
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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