RISMEDIA, July 27, 2007—Home sales decreased 24.7% in June in California compared with the same period a year ago, while the median price of an existing home increased 3.2%, the California Association of Realtors® (C.A.R.) reported.
“The focus on foreclosures and subprime lending is ongoing and, coupled with higher inventories of homes for sale, is prompting many would-be buyers to play a ‘wait-and-see’ role,” said C.A.R. President Colleen Badagliacco. “However, well-maintained homes with curb appeal that are priced for today’s market continue to sell. It’s often a matter of counseling buyers and sellers to set realistic expectations on both sides of the transaction.
“First-time buyers continue to be impacted by tighter mortgage underwriting standards and the affordability challenge, which has not improved significantly despite price declines in most regions of the state,” she said.
Closed escrow sales of existing, single-family detached homes in California totaled 364,280 in June at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local Realtor® associations statewide. Statewide home resale activity decreased 24.7% from the 483,690 sales pace recorded in June 2006.
The statewide sales figure represents what the total number of homes sold during 2007 would be if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during June 2007 was $594,260, a 3.2% increase over the revised $575,850 median for June 2006, C.A.R. reported. The June 2007 median price increased 0.2% compared with May’s revised $592,780 median price.
“With just over a 10-month supply of homes for sale on the market, we expect further softness in prices in the coming months,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “The San Francisco Bay Area continues to see leaner inventory levels compared to Southern California and the state as a whole.
“Unlike the downturn we experienced in the early 1990s, the sales decline is not driven by weakening economic conditions,” she said. “Both the California and U.S. economies continue to expand.”
Highlights of C.A.R.’s resale housing figures for June 2007:
C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in June 2007 was 10.1 months, compared with 6.1 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
Thirty-year fixed-mortgage interest rates averaged 6.66% during June 2007, compared with 6.68% in June 2006, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.68% in June 2007 compared with 5.71% in June 2006.
The median number of days it took to sell a single-family home was 51.7 days in June 2007, compared with 45.3 days (revised) for the same period a year ago.
Regional MLS sales and price information is contained in the tables that accompany this press release. Regional sales data are not adjusted to account for seasonal factors that can influence home sales. The MLS median price and sales data for detached homes are generated from a survey of more than 90 associations of REALTORS® throughout the state. MLS median price and sales data for condominiums are based on a survey of more than 60 associations. The median price for both detached homes and condominiums represents closed escrow sales.
In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 28%, or 105 out of 375 cities and communities, showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. (The top 10 lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.)
Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices for June may be exaggerated due to compositional changes in housing demand. The DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. Online at http://www.car.org/?id=Mzc1OTE=.
Statewide, the 10 cities and communities with the highest median home prices in California during June 2007 were: Laguna Beach, $1,700,000; Burlingame, $1,637,500; Los Altos, $1,635,000; Newport Beach, $1,615,000; Palos Verdes Estates, $1,542,000; Saratoga, $1,465,000; La Canada-Flintridge, $1,400,000; Mill Valley, $1,395,000; Manhattan Beach, $1,300,000; Hermosa Beach, $1,205,000.
Statewide, the 10 cities and communities with the greatest median home price increases in June 2007 compared with the same period a year ago were: Menlo Park, 41.5%; Palos Verdes Estates, 25.9%; La Canada-Flintridge, 21.7%; Arcadia, 21.1%; Newport Beach, 20.1%; Santa Monica, 18.7%; Moorpark, 16.1%; Chino Hills, 12.6%; Saratoga, 11.9%; Los Angeles, 11.7%.
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