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REALTOR®: California Home Sales, Median Price Fall in November

San Mateo County Median Home Price up 2.67 percent

Monday, December 24, 2007

California home sales were down 36.2 percent in November compared with the same period a year ago, while the median price of an existing home fell 11.9 percent, according to a California Association of REALTORS® (C.A.R.) report. San Mateo County home values, however, appear to be holding their own. The county’s median home price was up 2.67 percent compared with last year.

“While it is normal for sales to decline at this time of year, regional sales fell more steeply than usual because of the ongoing liquidity crunch and tighter underwriting standards,” said C.A.R. President William E. Brown.

Closed escrow sales of existing, single-family detached homes in California totaled 287,600 in November at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity decreased 36.2 percent from the 450,930 sales pace recorded in November 2006.

The median price of an existing, single-family detached home in California during November 2007 was $488,640, an 11.9 percent decrease from the revised $554,500 median for November 2006, C.A.R. reported. The November 2007 median price fell 1.7 percent compared with October’s $497,110 median price.

“The large decreases in the statewide median price of the past few months have resulted from difficulties in obtaining jumbo loans, particularly in the upper and middle tiers of the market,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Whether this trend will continue after the liquidity crunch has eased remains to be seen.”

In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 13.9 percent, or 41 out of 295 cities and communities, showed an increase in their respective median home prices from a year ago. C.A.R. reports the San Mateo County median home price for November 2007 was $770,000, up 2.67 percent from November 2006.

As far as San Mateo County properties are concerned, prices will continue to hold their own and will actually increase, San Mateo County Association of REALTORS® 2007 President Geoffrey Craighead predicted. “Home prices in other areas of the state may decrease, but not in San Mateo County because of its ideal location and the limited supply of homes in the area,” said Craighead.

Craighead’s advice to prospective homebuyers is to buy now. Craighead said, “I look forward to the spring, which is when the market traditionally picks up, but for those thinking of buying a home, December and January are actually the best times since these are times when the market and competition for homes slows.”

Craighead advises sellers to “hang in there, but make sure you price your property right. As far as moving property, desirability is in pricing the property right, because if it is priced right, you will still get multiple offers.”

It is more important now than it was two years ago to seek the advice and assistance of a Realtor when buying or selling a home, according to Craighead. “Two years ago, because of the frenzy of the market, Realtors were order takers and didn’t need to do much in marketing property, but now, you need the advice and expertise of a Realtor in marketing your property and pricing it right. We’re going back to the basics in real estate, but there are still many options in the mortgage market for homebuyers today, and that’s where the experienced and knowledgeable Realtor can shine more so.”

According to the C.A.R. report, statewide, the cities and communities with the highest median home prices in California during November 2007 were: Newport Beach, $1,400,000; Saratoga, $1,300,000; Santa Monica, $1,100,000; Cupertino, $1,074,090; Santa Barbara, $1,065,000; Danville, $1,021,000; Yorba Linda, $910,000; San Clemente, $870,000; Redwood City, $822,500 and San Francisco, $814,500.

Statewide, the cities and communities with the greatest median home price increases in November 2007 compared with the same period a year ago were: San Juan Capistrano, 42.3 percent; Newport Beach, 31.5 percent; Santa Monica, 29.4 percent; Mountain View, 18 percent; Cupertino, 18 percent; Truckee, 10.2 percent; Redwood City, 9.7 percent; Yorba Linda, 9.6 percent; Santa Barbara, 7.5 percent; Moorpark, 7.2 percent; San Francisco, 7.2 percent; Pasadena, 7.2 percent; and Los Angeles, 5.8 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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