SAN JOSE, Calif., Nov. 10, 2010 /PRNewswire/ -- The average sales price for a home in Santa Clara County rose 5.97 percent in October from September, signaling strong demand and increased buyer confidence.
The average sales price for homes, including single family residences, townhomes, and condos, went up to $699,174 in October from the $659,798 in September. The spike in year-over-year comparison is even bigger: It jumped 11.09 percent from the same month last year.
"The price increase indicates that homebuyers recognize the value of owning a home or buying investment properties in Santa Clara County," said Karl Lee, president of the Santa Clara County Association of REALTORS®. "Again it demonstrates that our county is way ahead of most other markets in the nation on the path to full recovery."
The number of closed sales fell 4.52 percent from September, the lowest monthly decrease in five months. 1,078 homes closed in October as compared 1,129 in September. That number was 1,422 the same month last year.
Fewer homes for sale in October reversed the trend of rising inventory since April. 6,397 homes were on the market, a 6.91 percent decrease from September but a whopping 44.34 percent increase from the same month last year. A healthy inventory, which gives homebuyers an abundance of choice, is another indicator of the vitality of the Santa Clara County housing market.
"The dip in inventory might have been caused by major lenders' decision to temporarily halt foreclosure procedures," said Lee. "We expect banks to resume foreclosure proceedings when they finish reviewing their internal processing practices. This year continues to be a rare opportunity for homebuyers in Santa Clara County – prices are affordable and mortgage rates are at historic lows. Savvy buyers are now snapping up bargains while those who wait may look back a decade from now and wonder how they missed this opportunity."
SCCAOR President Karl Lee can be reached for comments at firstname.lastname@example.org or 408.205.1726.
About the Santa Clara County Association of REALTORS®
SCCAOR, established in 1896, is California's oldest and Northern California's largest real estate association. We represent 7,000 REALTORS® and affiliate members. SCCAOR exists to meet the business, professional and political needs of its members and to promote, protect homeownership and private property rights.
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SOURCE Santa Clara County Association of REALTORS