Prices of bank owned homes sale in California's San Francisco Bay Area, particularly in Santa Clara County, have remained steady since January of this year. According to data release by MDA DataQuick, a real estate information company, the increase in median home prices for the past four months was significant after a series of price decline in 2008.



The steady home market price could mean a lot to area homeowners. However, real estate experts cautioned that the price trend is not an indication that the housing market is on its way to recovery.

In Santa Clara County, the median price of foreclosed single-family homes was $435,000 in April, representing a 2 percent increase from the previous month. The year started with the median home price hovering from $420,000 to $435,000. Meanwhile, the sales volume of single-family foreclosed homes increased for several months compared with figures last year.

Foresight Analytics economist Matthew Anderson said that the price trend is a typical pattern indicating the early phases of a housing recovery.

Figures released by MDA DataQuick showed that the nearly 1,171 single-family foreclosed properties changed ownership in Santa Clara County in April, an increase of 27 percent compared with figures for the same month the previous year. April's sales volume marked the fifth consecutive month that it went up over 20 percent on a year-to-year basis.

Meanwhile, sales of condominiums in the area also jumped by 1.3 percent, representing 318 units. The total home sales volume in San Francisco Bay Area rose by 28 percent last month, compared the previous year. Additionally, condominium sales jumped by 1.4 percent for the same month.

Anderson said that the sales volume still lacks the strength to boost the housing market towards recovery. He added that the economy should improve first, particularly the job market, in order to create a sustained and full recovery in the real estate market.

According to MDA DataQuick, stable median home prices are a result of post-foreclosure properties making up only a small portion of the house sales.

Coldwell Banker for Northern California President Rick Turley said that the volume of foreclosure resales is expected to rise before the end of this year. He explained that there are backlogs of bank owned homes sale that have not yet been placed on the market. These bank-owned properties will pressure the median price to go down but the flock of luxury-house sales will keep prices stable.