Santa Clara County April home sales slowest in five years

The San Jose Mercury News reports:

Santa Clara County home sales last month had their slowest April in five years, a research company reported today. The median home resale price fell to $725,000, taking an unusual dip from the month before.

The figures, released today by DataQuick Information Systems, are the latest sign that the home market is losing steam. Though the market is not as hot, in Santa Clara County, April prices were still up 6.4 percent from a year earlier.

``These are strange times for forecasters and analysts. Are we headed into a market lull? Or are we seeing the beginning of a significant downturn?'' said Marshall Prentice, DataQuick president. ``Many of the fundamentals for housing are at a crossroads: Inflation, interest rates, demand, household incomes, prices, and whether homes are a good investment compared to other investments.''

In the nine-county region, 8,358 new and previously owned houses and condos sold last month, down 14 percent from March and down 25 percent from April 2005.

Last month was the most sluggish April since 2001, when 7,193 homes changed hands in the Bay Area. The figures were compiled by DataQuick from public records of home sales that were completed in April.

In Santa Clara County, the median price of a previously owned house sold last month was $725,000. That figure was down slightly from a record $735,000 in March. Sales volume, however, was down 24 percent from April last year.

An interesting story.