The Sunnyvale housing market

The Sunnyvale housing market, a part of the larger San Jose and Santa Clara County real estate markets, showed strong signs of improvement in the most recent tracking periods. According to a May 31, 2010 article in the Mercury News, “The local housing market continues to show improvement in sales and value of homes, though overall home sales in the nine-county Bay Area and the state as a whole, showed mixed results during the month of April, according to [the] latest real estate sales and price reports.” The piece, written by Rose Meily, went on to note that “MDA DataQuick reports sales for all new and resale homes and condos in Santa Clara County rose 3.1 percent in April compared with the same period last year. A total of 1,656 homes sold in April, up from 1,606 homes sold in April 2009. The median home price for all homes jumped 20.7 percent from $405,000 in April of 2009 to $489,000 this year.”

The performance of Sunnyvale homes for sale was a substantial improvement over the rest of the Bay Area, which actually saw a decline in home sales in the month of 2010. According to a May 20, 2010 article in the Silicon Valley/San Jose Business Journal, “Bay Area home sales fell slightly below the year-ago level and remained well below average in April, according to a report Thursday by MDA DataQuick. In April a total of 7,003 homes closed escrows in the nine-county Bay Area, up 0.2 percent from 6,992 in March but down 1.9 percent from 7,139 in April 2009.” The piece continued to explain that “Some of April’s sales activity might have been delayed until at least May as buyers decided to take advantage of new state tax credits that became effective May 1.”

The Sunnyvale real estate market was actually cited as one of the most improved in the United States. According to Businessweek, “Of the 50 largest metros, San Jose saw the largest increase in home prices, 8.3 percent year-on-year during the first quarter, according to CoreLogic data. This was driven by a decrease in inventory – supply of single-family homes in Santa Clara County dropped 19 percent year-on-year in May…”

The East Bluff housing market

The East Bluff housing market, a subsidiary of the much larger Orange County real estate market, showed signs of strength despite a slight month-over-month decline in median price. According to May 24, 2010 article from the OC Metro, “Orange County’s median home price popped 13.7 percent in April, compared to the same time last year, according to a new report from the California Association of Realtors. The number rose to $491,120, up from $432,110 in the same month last year.” The piece, written by Kristen Schott, continued to say that “However, the median fell 0.4 percent from March, when the number hit $493,120. Statewide, C.A.R., which bases its figures on Multiple Listing Service data, is reporting that the median home price rose 21 percent to $306,230 compared to the same time last year. The number was $253,110 in 2009. The price also increased 1.5 percent from March.”

The average cost of an East Bluff real estate, compounded with other Orange County communities, saw a slight dip in the month of April. According to a May 18, 2010 article from the Orange County Business Journal, “Orange County’s median home price edged down $2,000 in April from March, but still stands $50,000 higher than the prices seen here a year ago. The median price of a home sold here in April was $430,000, a less than 1% drop from a month earlier, according to San Diego-based MDA DataQuick, a unit of Canada’s MacDonald Dettwiler and Associates.” The piece by Mark Mueller went on to note that “Median home prices are now about 13% higher than they were a year ago, but still are off nearly 33% from their highest level, seen in mid-2007.”

Despite this slight decline in median price, the East Bluff and Orange County real estate markets were still much stronger than surrounding counties. According to a May 18, 2010 article from OCLNN, “Orange County saw stronger gains in home sales and price compared to all other Southern California counties during April. The median home price in Orange County jumped 13.2 percent since April 2009, to $430,000…”

Aliso Viejo housing market

The Aliso Viejo housing market continues to face conflicting indicators, although most reports point towards an increasing median price. According to a June 10, 2010 article from the OC Register, “The latest home affordability calculations from the California Realtors Association show that for Orange County a minimum income of $69,770 is needed to afford a starter home ($413,680 median price in the first quarter.) Estimated monthly payment, including taxes and insurance, on an entry level home was $2,330.” The piece went on to state that “The recent “Paycheck to Paycheck” housing affordability report by the Center for Housing Policy suggests that $129,850 of income was needed in the fourth quarter to buy a median-priced O.C. home!…For the first-time buyers based on the number of households that can pay 85% of the median home price making a 10% down payment and assumes [the] buyer would spend 40% of his or her income on monthly house payments.”

The average price of an Aliso Viejo real estate increased significantly over year-ago levels in the most recent tracking periods. According to a June 4, 2010 article from the Orange County Register, “For the 22 business days ending May 18 – DataQuick’s latest real estate buying report – Orange County saw…$440,000 median selling price that is up 12.8% vs. a year ago yet -32% below June 2007’s peak of $645,000. A median of $440,000 was last seen in Orange County in August 2008.” The piece, posted by Jon Lansner, went on to say that “The most recent median is 19% above the cyclical low hit in January 2009 at $370,000 – a current bottom that was 43% below the peak…In this most recent period, Orange County shoppers bought 3,056 residences – that is +12.8& vs. year-ago buying activity.”

This same trend was observed across nearly three-fourths of Orange County communities such as Alison Viejo. According to a June 11, 2010 report from the Orange County Register, “57 of O.C.’s 83 ZIP codes had gains in their respective median selling price. Overall, prices were +9.9% vs. a year ago. Taking sales volume in consideration, home pricing is up in ZIPs representing 73% of the Orange County market.”