Mark's Notebook

Housing Prices Higher But Sales Are Slowing

San Jose Mercury News

By Pete Carey, Mercury News

Santa Clara County's sizzling housing market cooled a little bit last month, but the median price of a single-family home jumped to a record of $714,250, bucking speculation of a downturn or bursting bubble.

That's a 19 percent increase from October of last year, when the median price was what now seems a modest $600,000.

But sales of single-family homes were nearly 10 percent below last October's, suggesting the continuation of a slow move toward balance in a market that just a few months ago was so hot homes sold almost overnight.

One reason for the slowdown could be mortgage rates. They've been climbing steadily, this week reaching an average 6.37 percent nationally for 30-year fixed loans, the highest level since 2003. That's nearly a percentage point above this year's low of 5.53 percent.

The fall months typically produce slower home sales than the spring and summer, so the slowdown is not entirely unexpected. The median price edged above the previous record of $714,000, set in August, and topped September's median of $705,000.

In the nine-county Bay Area, the median price for a single-family home was up 16.7 percent over last year, to $644,000, but sales were down 6.2 percent. The number of homes sold dropped for the seventh month in a row.

http://www.mercurynews.com/mld/mercurynews/news/13200145.htm

Articles

Last updated Monday 3 August 2009