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Sales of existing homes plummet
Although the newest figures out on the housing market reflect September statistics, the effect of the terrorist attack and its impact on real estate is still unknown.
In California, sales of existing homes fell 16.1 percent and the median home price rose 12.3 percent compared to the same period in September a year ago, the California Association of Realtors and Real Estate Solutions, a real estate information service, reported.
"California continues to be impacted by slower job growth and weaker consumer spending at the national level," said the association's president, Gary Thomas. "Sales fell last month compared to a year ago, although last September was one of the strongest on record.
"The impact of a slowing economy is being felt primarily at the high-end of the market, especially in the Silicon Valley area, which has experienced the greatest run-up in prices over the past several years," he said. "Entry-level home sales remain strong."
Statewide home resale activity decreased 16.1 percent from the sales pace recorded in September 2000. Resale activity posted a decrease of 16.8 percent in September compared to August 2001. In Santa Clara County, sales were down by 37.9 percent from the year before and down from August 2001 sales figures by 22.5 percent.
The median price of an existing single-family detached home in California during September 2001 was $276,960, a 12.3 percent increase over the $246,530 median for September 2000, the association reported. While the September 2001 median price decreased 0.2 percent compared to August 2001, there was an increase in the respective median home prices from a year ago in 78.2 percent of California cities and communities.
In Santa Clara Valley, the median price of a home was down slightly from the previous year during the same period. In September 2001, Santa Clara County's median-priced home was $500,000 compared to $500,500 in September 2000.
Interest rates continued downward with 30-year, fixed mortgage interest rates averaging 6.82 percent during September 2001 compared to 7.9 percent in September 2000, according to the Federal Home Loan Mortgage Corp. Adjustable mortgage interest rates averaged 5.57 percent in September 2001, compared to 7.27 percent in September 2000.
"The state's chronic shortage of affordable housing continued to drive the median price higher in September," said Leslie Appleton-Young, California Association of Realtors vice president and chief economist. "Looking ahead, we're facing an uncertain time in the residential real estate marketplace," she said. "We expect to see the full impact of the Sept. 11 events in next month's sales and price report."
When compared to the state median prices, Santa Clara County communities continue to rank in the higher median home price categories. Some of the top 10 cities and communities with the highest median home prices in California during September 2001 were: Belvedere/Tiburon, $1,520,000; Burlingame, $835,000; Laguna Beach, $785,000; Calabasas, $780,000; Palos Verdes Estates, $780,000; Mill Valley, $772,000.
Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors at www.siliconvalley-realtors.org. Send questions on any topic to jnewton@jnpr.com.
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Cupertino, California Since 1947
