The Real Deal
Home sales, prices are back on the way up
March home sales jumped back up to the levels of two years ago in the Bay Area, with prices of single-family homes regaining most of their declines in recent months, DataQuick Information Systems reported in an update on the status of housing.
A total of 10,416 new and resale houses and condos were sold in the nine-county region in the Bay Area last month. Those numbers reflect a 42.7 percent increase from 7,298 for February and a 22.9 percent increase from 8,473 for March one year ago, according to the real estate information service.
While an increase from February to March is normal for the season, last month's sales count was the third strongest March in DataQuick's statistics, which go back to 1988. Sales in March 2000 totaled 10,432, and the sales count in March 1989 sales was 11,442. On a year-over-year basis, sales have now gone up three months in a row for the first time since late 1999.
"Today's Bay Area numbers are a lot more solid than they were two years ago. Home values are sturdy across the board, sales are strong in all categories and buyers do not appear to be stretching their finances more than normal. Current trends will probably stay with us through the summer and on into fall," said Mike Ela, president of DataQuick.
The median price of a single-family home in the Bay Area went up by 2.1 percent from the month before, with the current median price at $381,000, compared to $373,000 in February. This was down slightly by 1.3 percent from the all-time high in March a year ago at $386,000. The median home price for Santa Clara County was $485,000, while the median home price in Los Gatos was $850,000, and Saratoga's median price was $1,097,500.
The median home price indicates the point at which half the homes sell at a higher price and half the homes sell below the median mark.
The statistics back up the surge in activity in Santa Clara County, where Realtors are busy and multiple offers are back on the scene, said Alicia Tuvell, president of the Silicon Valley Association of Realtors. "The market is strong right now. We're seeing multiple offers and lots of activity. As spring approaches, there will be more choices for buyers as more homes come on the market."
While the health of the economy is still somewhat of a question mark, three months of strong home sales in a row are a good sign that the economy may be on the mend.
Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors at www.silvar.org. Send questions on any topic to jnewton@jnpr.com.
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Los Gatos, California Since 1881
