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REALTOR®: C.A.R. Reports Statewide Sales Decrease 40.2 percent, Median Home Price Falls 9.9 Percent

San Mateo County October home sales increase from prior month

Monday, December 3, 2007

Home sales decreased 40.2 percent in October in California compared with the same period a year ago, while the median price of an existing home fell 9.9 percent, the California Association of REALTORS® (C.A.R.) recently reported. Amid the statewide plunge in sales, communities like San Mateo County and other parts of the Bay Area continue to do well.

C.A.R. President William E. Brown explained the decline in statewide sales at the upper end of the market contributed to a significant decline in the statewide median price as even well-qualified borrowers had difficulty securing financing.

“Financing issues have dogged entry-level buyers since early 2007, but they spilled over into the middle and upper-tier markets in the last few months,” said Brown.

California’s home resale activity decreased 40.2 percent from the 443,320 sales pace recorded in October 2006, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide.

The median price of an existing, single-family detached home in California during October 2007 was $497,110, a 9.9 percent decrease from the revised $552,020 median for October 2006, C.A.R. reported. The October 2007 median price fell 6.4 percent compared with September’s $530,830 median price.

“We expect further weakness in sales over the next few months as the liquidity crisis plays out,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Both the state and national economies remain fundamentally sound at this time, despite recent developments in the housing market. While there have been mixed signals in recent months, economic growth is expected to continue into 2008.”

The market in San Mateo County, however, still appears healthy, as home sales increased in October 2007 compared with the prior month. According to data provided by MLS Listings Inc., the multiple listing service for San Mateo County, the sales of single family homes increased from 262 in September 2007 to 282 in October 2007. Sales of condominiums/townhomes also increased from 80 in September to 98 in October. Sales of single family homes were up in Atherton, Burlingame, Daly City, El Granada, Half Moon Bay, Hillsborough, Menlo Park, Pescadero, Portola Valley, San Mateo and Woodside. Sales of condo units increased in Daly City, Foster City, Menlo Park, San Bruno, San Carlos and San Mateo.

In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 13.9 percent, or 41 out of 296 cities and communities showed an increase in their respective median home prices from a year ago. In San Mateo County, these include the cities of Redwood City, up 20.6 percent from $756,000 to $912,000; San Carlos, up 9.5 percent from $847,000 to $927,500; and San Mateo, up 7 percent from $775,000 to $829,500. These cities were among the 10 cities and communities with the highest median home prices in California during October 2007. The others were Newport Beach, $1,575,000; Santa Barbara, $1,275,000; Cupertino, $1,033,000; Danville, $1,017,500; Los Gatos, $1,005,000; San Ramon, $835,000; and San Clemente, $832,500.

Statewide, the 10 cities and communities with the greatest median home price increases in October 2007 compared with the same period a year ago were Santa Barbara, 24.4 percent; Arcadia, 21.3 percent; Redwood City, 20.6 percent; Newport Beach, 18.4 percent; San Ramon, 14.4 percent; Cupertino, 11.7 percent; San Carlos, 9.5 percent; Redlands, 8.8 percent; Redondo Beach, 8.7 percent; and Sunnyvale, 7.6 percent.

Highlights of C.A.R.’s resale housing figures for October 2007:
• C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in October 2007 was 16.3 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.
• Thirty-year fixed-mortgage interest rates averaged 6.38 percent during October 2007, compared with 6.36 percent in October 2006, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.68 percent in October 2007 compared with 5.56 percent in October 2006.
• The median number of days it took to sell a single-family home was 59.3 days in October 2007, compared with 56.5 days for the same period a year ago.

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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