June 6, 2008

Home sales up 30 percent in April

Finally, a glimmer of good news for Silicon Valley home sellers

Home sales were up 30 percent last month compared with March, which was the steepest March-to-April increase in almost two decades for Santa Clara County, reports DataQuick Information Systems. It is a glimmer of good news after several months of record-low sales figures.

"You've finally hit a price point that is attracting people back into the market," said David Martz, an agent with Intero Real Estate. “In San Jose's Alum Rock neighborhood, for example, homes priced at $350,000 or $400,000 are selling, while in the Rose Garden neighborhood, a bargain could mean finding a home in the high $600,000 range. There are some great deals available."

But it's not clear the rebound will last, cautioned DataQuick's Andrew LePage, discussing the figures released stating "We don't know how deep this demand is, even at the discounted prices."

While the sales trend may be a ray of hope for home sellers, price trends are favoring buyers. The median price of the existing houses that changed hands in Santa Clara County last month was $699,500, DataQuick’s statistics indicate. That figure was down 12.9 percent from $803,000 in April 2007. The median price of condos sold in the county slid 13.5 percent from a year ago, to $467,000.

A total of 1,440 new and resale houses and condos changed hands in Santa Clara County in April, up from 1,105 in March.

"It was a pretty good pop," LePage said.