I believe you. It's just the numbers keep calling me a fool.
Can't believe it. NO WONDER they were able to sell underwater real estate in Florida!
Tell Nina that:
Home price spiral eases
MEDIAN PRICE IN SANTA CLARA COUNTY JUMPS ONLY $750 FROM MONTH AGO AS SALES DROP 5.8%
By Pete Carey
Mercury News
The median price of a single-family home in Santa Clara County jumped to an all-time high of $715,000 in November, although a slowing pace of home sales suggested the region is returning to a less fevered housing market.
For prospective home buyers, the numbers spell relief from the hectic pace of home sales of the past few years.
``We've been on a rocket ride, and that is not a healthy thing in the long term,'' said Steve Hanleigh, a Willow Glen broker. ``The market is adjusting. People are taking a breath of air and are being more focused on what they want.''
November's median price was up just over 19 percent from a year ago, when a median-priced single-family home went for $600,000 in Santa Clara County. It nudged upward the $714,250 median price record set in October.
But concern over affordability is growing. The California Association of Realtors calculates that only 18 percent of valley households can afford the median-priced house, down from 23 percent a year ago.
For the Bay Area, the median single-family home price was $656,000 last month, up 17 percent from a year ago and up 1.8 percent from $644,000 in October. In four counties -- Santa Cruz, San Mateo, San Francisco and Napa -- prices were down from October, but still made substantial gains from a year ago.
Sales in Santa Clara County were down 5.8 percent from October and down 12.4 percent from the previous November, as the number of buyers and sellers became more evenly matched.
Condo prices fall
Meanwhile, condominium median prices in the county registered a drop from $485,000 in October to $465,000 in November on a 9 percent drop in sales.
Rising interest rates and the start of the holiday season may account for some of these declines, but Marshall Prentice, president of DataQuick Information Systems, which released the numbers, said there seems to be a return to balance in the overheated Bay Area real estate market.
``We knew the year-ago numbers were unsustainably strong,'' Prentice said. ``Right now it looks like current trends will last well into 2006, with strong, but not record-breaking sales, and continued appreciation.''
Buyers are still turning out in force for well-maintained homes in many areas. Low-interest adjustable loans and other financing packages may be helping buoy demand.
When John and Ariana Rhoadarmer listed their Mountain View home for $848,000 last week, 300 people trooped through during the weekend open house. They got five offers, selling it for more than the asking price.
``It's been real incredible, actually,'' said John Rhoadarmer. The couple bought a four-bedroom home in a nearby neighborhood. ``We saw that the four-bedrooms were sitting on the market just a little bit longer. We did compete with one couple,'' Rhoadarmer said.
On the other hand, Bruce Deremer has lowered the price on an Almaden Valley home by $40,000 to $955,000 after the home had gone 60 days unsold. He said he may take it off the market until the end of January and increase the price again. ``It's a little slow right now, but I think it will pop back up after the first of the year,'' he said.
On the lower end, increasing prices and rising interest rates are squeezing some entry-level home buyers out of the market. The California Association of Mortgage Brokers predicts interest rates will reach 7 percent next year.
As mortgage rates creep upward, more buyers are taking advantage of creative financing. The 40-year mortgage ``has become the loan of choice'' in the past six months, said John Marcell, president of the brokers association.
Marcell sees price increases slowing to perhaps 2 to 5 percent a year. ``Demand for housing will continue to be strong,'' he said.
Outlook for 2006
The California Association of Realtors predicts the median price will go up at a slower pace next year on sales that are down about 2 percent, said its chief economist, Robert Kleinhenz.
Brokers have reported that very expensive homes are moving more slowly in some parts of Santa Clara County and selling well in others. DataQuick said that statewide, higher-price homes are still selling well. The company pays close attention to expensive homes because they are a predictor of change in the market.
``When we have numbers like these'' for November ``it's an easy call,'' said John Karevoll, an analyst with DataQuick. ``For the short term, we're in for more of the same.''
``I'm very optimistic,'' said Cupertino broker Nina Yamaguchi. ``There's a lot of pent-up demand. I think we're going to have a very busy first quarter.''
Contact Pete Carey at pcarey@mercurynews.com or (408) 920-5419.
mercurynews.com |
