California Homes Sales Lowest Since 2010

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California home sales dropped for the fourth straight month in November, due to a combination of increasing home prices and higher interest rates, according to the California Association of Realtors.

A total of 387,520 existing, single-family California homes were sold in November, dropping 3.4 percent from a revised 401,000 homes sold in October. The figure is 12 percent lower than last year, and is the lowest since July 2010. 

"While diminishing housing affordability played a big role in the larger than expected decrease in home sales this November, exceptionally strong sales last year was another factor for the double-digit year-to-year decline," CAR vice president and chief economist Leslie Appleton-Young said in the report. "The demand for housing could remain soft in the upcoming months as buyers and sellers continue to search for a level playing field in the market." 

The statewide median price for existing, single-family homes edged 1.2 percent lower to $422,210 from October's $427,209, CAR reports. The November figure was 22.2 percent higher than last November's revised $345,560, representing the 17th consecutive month of double-digit annual increases. 

The run-up in home prices is seen as a "double-edged sword" for the state's housing market.

"While welcomed news for homeowners and prospective sellers, diminished affordability is squeezing out many buyers and dampening their enthusiasm for home purchasing," CAR president Kevin Brown said in the report. "Buyers are playing the waiting game and putting their home search on hold until prices stabilize and more inventory becomes available in the market."

More from the report: 

• The available supply of existing, single-family detached homes for sale edged up in November to 3.6 months, up from October's Unsold Inventory Index of 3.4 months. The index was 3 months in November 2012.  A six- to seven-month supply is considered typical in a normal market.

• The median number of days it took to sell a single-family home also increased to 36.7 days in November, up from 33.1 days in October, but was down from 37.5 days in November 2012.

• Mortgage rates rose in November, with the 30-year, fixed-mortgage interest rate averaging 4.26 percent, up from 4.19 percent in October and up from 3.35 percent in November 2012, according to Freddie Mac.  Adjustable-mortgage interest rates in November averaged 2.61 percent, down from 2.63 in October and up from 2.57 percent in November 2012.