LOS ANGELES (May 25) – Home sales decreased 27.8 percent in April in California compared with the same period a year ago, while the median price of an existing home increased 6.2 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
“April sales fell in part because of tighter credit standards and growing concerns about the impact of subprime loans on the market, ” said C.A.R. President Colleen Badagliacco. “Throughout the state inventory levels have increased to their highest levels in recent years, giving buyers more time to view a greater variety of homes and sellers who set realistic prices an edge in the market.”
Closed escrow sales of existing, single-family detached homes in California totaled 373,280 in April 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 27.8 percent from the 516,960 sales pace recorded in April 2006.
The statewide sales figure represents what the total number of homes sold during 2007 would be if sales maintained the April 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 April 2007 was $597,640, a 6.2 percent increase over the revised $562,820 median for April 2006, C.A.R. reported. The April 2007 median price increased 2.1 percent compared with March’s revised $585,460 median price.
“Although the median price of a home in California continues to rise, this reflects the fall-off in sales in the lower-priced markets of the state where new home inventories and foreclosures are competing with the existing home market,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Fewer sales from these regions coupled with modest gains in some of the stronger coastal markets are pushing the median price for the state up slightly.”
Highlights of C.A.R.’s resale housing figures for April 2007:
. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in April 2007 was 10 months, compared with 5.7 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 6.18 percent during April 2007, compared with 6.51 percent in April 2006, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.45 percent in April 2007 compared with 5.62 percent in April 2006.
. The median number of days it took to sell a single-family home was 53.5 days in April 2007, compared with 42.5 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, 35.3 percent, or 128 out of 363 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 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/index.php?id=Mzc0ODE.
. Statewide, the 10 cities and communities with the highest median home prices in California during April 2007 were: Manhattan Beach, $1,850,000; Los Altos, $1,710,000; Saratoga, $1,550,000; Burlingame, $1,500,000; Laguna Beach, $1,457,500; Newport Beach, $1,400,000; Los Gatos, $1,200,000; Santa Barbara, $1,200,000; Palos Verdes Estates, $1,180,000; Mill Valley, $1,112,500; Rancho Palos Verdes, $1,109,000.
. Statewide, the 10 cities and communities with the greatest median home price increases in April 2007 compared with the same period a year ago were: La Habra, 55.1 percent; Laguna Niguel, 26.2 percent; Los Gatos, 20 percent; Los Angeles, 19.8 percent; Moorpark, 18.7 percent; Dana Point, 18.2 percent; San Juan Capistrano, 17.1 percent; Redwood City, 15.3 percent; Ridgecrest, 13.9 percent; Walnut Creek, 13.6 percent.
Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
