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REALTOR®: Statewide home sales down in August, but market strong in San Mateo County

It’s a good time for buyers, according to Realtors

Monday, October 1, 2007

Home sales decreased 27.8 percent in August in California compared with the same period a year ago, while the median price of an existing home increased 2 percent, the California Association of REALTORS® (C.A.R.) reported. San Mateo County’s housing market continues to fare well, as local MLS figures still show strong sales and the median home price still rising.

C.A.R. Vice President and Chief Economist Leslie Appleton-Young explained the decline in sales statewide was accelerated in August as a result of the so-called credit or liquidity crunch that began in July. She said, "The credit crunch emerged as uncertainty about the extent of the subprime problem drove investors across the globe to turn off the tap of funds to lenders in mortgage and other credit market segments. With credit drying up, even qualified buyers were unable to receive funding for home purchases."

Appleton-Young said she expects the impact of the credit crunch will continue to negatively impact sales this year.
The median price of an existing, single-family detached home in California during August 2007 was $588,970, a 2 percent increase over the revised $577,300 median for August 2006, C.A.R. reported. The August 2007 median price increased 0.5 percent compared with July’s $586,030 median price.

While prices declined in 11 regions last month, the median home price continued to increase in the San Francisco Bay region and in San Mateo County, as well. The Central Valley and Sacramento regions were hit hard with an 11.5 percent and a 12.1 percent drop in median home price, respectively.

The picture was slightly different for the San Francisco Bay Area, however. C.A.R. reported the median price for the San Francisco Bay region was at $832,760, up 9.9 percent and the median for San Mateo County was $799,000, up 5.8 percent from August 2006.

San Mateo County Association of REALTORS® (SAMCAR) President Geoffrey Craighead said while sales may not be as fast-paced as they were last year, the San Mateo County housing market continues to fare well. He pointed to information from RE InfoLink, the county’s local MLS, which shows there were 57 single family homes sold in the city of San Mateo during the month of August, 45 in Redwood City, 30 in Daly City, 24 in Burlingame and 22 in Belmont. Average days on market increased just slightly, from 33 days in August 2006 to 38 days in August 2007.

“I think those numbers are impressive,” said Craighead. “It’s a good time for buyers. Interest rates are still low, inventory is good and buyers now have more time to negotiate and decide on the right home for them.”

Craighead said despite the subprime lending issues, “nothing has changed dramatically in terms of home loans. You still need a good credit history, a stable job and income, and money saved for a down payment. Homes will continue to appreciate in this area because land for housing is limited in San Mateo County.”

The C.A.R. report indicated statewide, the median number of days it took to sell a single-family home was 55.5 days in August 2007, compared with 50.9 days (revised) for the same period a year ago.

Statewide, the 10 cities and communities with the highest median home prices in California during August 2007 were: Los Altos, $1,815,750; Manhattan Beach, $1,700,000; Saratoga, $1,620,000; Newport Beach, $1,550,000; Burlingame, $1,505,000; Palos Verdes Estates, $1,450,250; Calabasas, $1,330,000; La Canada/Flintridge, $1,317,500; Coronado, $1,315,000; Los Gatos, $1,255,000.

Statewide, the 10 cities and communities with the greatest median home price increases in August 2007 compared with the same period a year ago were: West Hollywood, 35.8 percent; Los Gatos, 35.7 percent; Encinitas, 27.7 percent; Los Altos, 26.2 percent; San Carlos, 21.9 percent; Los Angeles, 20.9 percent; Newport Beach, 18.3 percent; Burlingame, 18.3 percent; Cupertino, 17.4 percent; Novato, 17 percent; Santa Monica, 16.8 percent.

The San Mateo County Association of REALTORS® (SAMCAR) is a professional trade organization representing over 3,800 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula. SAMCAR 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 San Mateo County.

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 contact Julie Ziemelis, Director of Public Affairs, e-mail , or phone (650) 696-8214.

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