California Home Prices up 33.5 Percent

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The median price of a single family home in California increased 33.5 percent in the last year, despite declining sales, according to the latest data from the California Association of Realtors.

CAR lists the median price for a home at $428,510 in June, up from a revised median price of $417,350 in May and $320,990 in June of 2012. Prices have increased at double-digit annual rates for a full year, CAR reports.

However, the number of sales declined to an annualized rate of 414,950, down 3.8 percent from a revised 431,490 in May and 3.7 percent lower than the 430,960 annualized rate in June of 2012.

"The June decline in home sales was attributed partially to the hike in interest rates in recent months," said CAR chief economist Leslie Appleton-Young.

A limited supply of homes continued to hamper the market. The available supply of existing, single-family detached homes was 2.9 months in June, up from 2.6 months in May, but down from 3.5 months in June 2012. A six- to seven-month supply is typical in a normal market.

"Despite a small increase in inventory, the supply of housing remains tight in most parts of the state and continues to fuel home price increases," said CAR president Don Faught. "The surge in home prices in the past year has given homeowners with previous underwater properties an opportunity to become trade-up buyers.

"However, many are finding this difficult because they either lack sufficient cash for a down payment or they are concerned that if they sell, they will have no place to go, given limited inventory."