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REALTOR®: Bay Area Home Sales, Median Price Down in December

San Mateo County median home price sees slight decline.

Monday, January 21, 2008

Bay Area home sales were down nearly 40 percent at the close of 2007, with a median price decline of 4.9 percent from December 2006. While all sales are down in the 9-county area when compared to last year, median home prices in San Mateo and Napa counties were the least impacted during December 2007.

A total of 5,065 new and resale houses and condos sold in the Bay Area in December, down 1.2 percent from November, and down 39.5 percent from December 2006, according to DataQuick Information Systems.

DataQuick’s statistics which go back to 1988, show until last month, the slowest December was in 1990, when 5,458 homes sold. The strongest December, in 2003, saw 12,349 sales. The average for the month is 8,903.

DataQuick reports sales of all homes in San Mateo County were down 31.7 percent, from 685 sold in December 2006 to 468 in December 2007. MLSListings Inc., the Multiple Listing Service for the San Mateo County Association of REALTORS® (SAMCAR) shows 248 single family homes sold in December 2007, down from 378 the same period last year. Single family home sales in Atherton, Hillsborough, Menlo Park and Woodside actually increased in December 2007 compared to the prior year.

The decrease in sales is more evident with regard to condominiums and townhomes. In December 2007, 55 condos/townhomes sold in San Mateo County, down from 124 in December 2006.

The median price of a Bay Area home declined 4.9 percent, from $618,000 in December 2006 to $587,500 last month. Sonoma, Solano and Contra Costa counties saw the largest drop in the median price of all homes, down 21.9 percent, 15.8 percent and 11.3 percent, respectively. The median home price in Napa County stayed at $590,000, while the counties of San Mateo and Santa Clara appear to be holding their own, showing just a slight drop of 0.2 percent from December 2006. The median price for all homes in San Mateo County in December 2007 was $733,000, down from $735,500 in December 2006.

Sue Walsh, 2008 president of the San Mateo County Association of REALTORS®, remains confident about the housing market in the Peninsula, despite the decline in sales and dip in median home price. She noted, “It’s all part of the cycle of real estate.”

MLSListings Inc. data shows Daly City, East Palo Alto, El Granada, Half Moon Bay, Menlo Park, Millbrae, Redwood Shores, San Bruno, and South San Francisco saw small declines in the median sales price of single family homes, but Atherton, Belmont, Brisbane, Burlingame, Foster City, Hillsborough, Montara, Portola Valley, Redwood City, San Carlos, San Mateo and Woodside saw median sales price increases in December 2007 compared with the prior year.

“I feel positive this will be a good year,” said Walsh. “I expect 2008 to be a normal year for real estate – not fast and furious, nor will it be doldrums for the housing market. It’s going to be healthy, at least for San Mateo County and the rest of the Peninsula,” said Walsh.

Walsh said homes prices in the county should hold steady because of the limited supply of housing and the pent-up demand for housing in the area.

Analysts attribute the decline in overall sales to the significant drop-off in financing with jumbo mortgages. Since the jumbo credit crunch hit in August, those mortgages have become pricier and harder to obtain. They also believe buyers and sellers are continuing to wait out the housing market turmoil that escalated.

“Because homes are expensive in the Bay Area, this has had a much greater effect on the market there. It looks like most non-essential buying and selling activity has been put on hold until things settle down," said Marshall Prentice, DataQuick president.

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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