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REALTOR®: C.A.R. reports sales decrease 38.9 percent, median home price falls 4.7 percent

As median home price drops slightly, it’s a good time to buy a home in San Mateo County

Monday, November 12, 2007

The California Association of REALTORS® (C.A.R.) has reported home sales decreased 38.9 percent in September statewide compared with the same period a year ago, while the median price of an existing home fell 4.7 percent. San Mateo County’s median home price also dropped slightly by 0.7 percent, signaling it’s a good time for serious buyers to purchase a home.

"While it is typical for the median price to dip seasonally as we move from August to September, this decline -- which was both the largest month-to-month percentage decline on record and the first year-to-year decline in more than 10 years -- was mainly the result of the credit or liquidity crunch, which also drove sales below the 300,000 mark,” said C.A.R. President Colleen Badagliacco.

“California’s sales fell more steeply than those of the U.S. as a whole because of its heavy reliance on jumbo loans – those above the conforming loan limit of $417,000,” she said. “This speaks to the need to raise the conforming loan limit in higher-cost states like California to more accurately reflect the cost of housing.”

The median price of an existing, single-family detached home in California during September 2007 was $530,830, a 4.7 percent decrease over the revised $557,150 median for September 2006, C.A.R. reported. The September 2007 median price fell 9.9 percent compared with August’s $588,970 median price.

“The impact of the credit crunch spread throughout all tiers of the market in September,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “While the entry-level portion of the market has been adversely affected by the subprime situation and tighter underwriting standards for much of this year, the high end of the market also saw a decline in sales, as even well-qualified buyers were affected by the lack of funds available for jumbo loans.”

C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in September 2007 was 16.6 months, compared with 6.4 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

The median number of days it took to sell a single-family home was 57.2 days in September 2007, compared with 54 days for the same period a year ago.

September saw home sales in the San Francisco Bay region drop by 45.6 percent. San Mateo County saw its median home price decrease slightly by 0.7 percent, compared with last year’s figure. The median price for all types of homes in San Mateo County – new and existing, condos and single-family was pegged at $755,000 in September 2007, down 0.7 percent from $760,000 in September 2006. Average days on market increased slightly from 31 in September 2006 to 41 in September 2007.

San Mateo County Association of REALTORS® President Geoffrey Craighead said he is not surprised at the figures, but he contends compared with the rest of the state, San Mateo County’s real estate market will continue to fare well. “We have a strong demand for homes here and a limited supply, and as we continue to experience job growth in the area, San Mateo County’s real estate market will continue to see much activity.”

As such, it’s a good time to buy a home in San Mateo County for serious buyers who intend to invest in a home for the long-term, said Craighead. “It is a buyer’s market, but don’t count on any real bargains in San Mateo County. Now more than ever, it is important to find a REALTOR® who is experienced and knowledgeable about the area and can help you find a home that fits your needs and your budget.”

Every market is different, stressed Craighead. “There are still good loans out there as long as you have a good credit rating and income. The best way to evaluate your situation and options is to contact a REALTOR® - a member of the San Mateo County Association of REALTORS® can provide solid advice on local market conditions and can help you find the home you’ve always wanted.”

To find a REALTOR® in your area, visit www.samcar.org.

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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