California Association of Realtors Reports February Home Sales Increased 83 Percent; Median Home Price Declined 40.8 Percent

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(News Source: California Association of Realtors)

(LOS ANGELES, CA) (March 25) -- Home sales increased 83 percent in February in California compared with the same period a year ago, while the median price of an existing home declined 40.8 percent, the California Association of Realtors (C.A.R.) reported today.

Closed escrow sales of existing, single-family detached homes in California totaled 620,410 in February 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 increased 83 percent from the revised 338,970 sales pace recorded in February 2008. Sales in February 2009 decreased 0.8 percent compared with the previous month.


Quick Facts:

• Existing, single-family home sales increased 83 percent in February to a seasonally adjusted rate of 620,410 on an annualized basis

• The statewide median price of an existing single-family home decreased 40.8 percent in February to $247,590

• C.A.R.'s Unsold Inventory Index fell to 6.5 months in February, compared with 15.3 months in February 2008

• The median number of days it took to sell a single-family home declined to 51.5 days in February 2009, compared with 69.3 days in February 2008

• "Home sales in California continue to be considerably stronger than the nationwide sales figures," said C.A.R. President James Liptak.  "The market will continue to register large, but diminishing year-to-year percentage gains in the coming months, as current sales are compared against the extremely low numbers that prevailed during the early months of the credit crunch." 

The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the February 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 February 2009 was $247,590, a 40.8 percent decrease from the revised $418,260 median for February 2008, C.A.R. reported. The February 2009 median price fell 2.3 percent compared with January's revised $253,330 median price.

"The California median price has declined by a larger margin than the nationwide median price," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  "This can be attributed to the under $500,000 portion of the market, which has experienced larger price declines than the other market segments due to the large share of distressed homes for sale. This further contributed to the decline in the statewide median."

Highlights of C.A.R.'s resale housing figures for January 2009:

• C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in February 2009 was 6.5 months, compared with 15.3 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 5.13 percent during February 2009, compared with 5.92 percent in February 2008, according to Freddie Mac. Adjustable-mortgage interest rates averaged 4.87 percent in February 2009, compared with 5.03 percent in February 2008.

• The median number of days it took to sell a single-family home was 51.5 days in February 2009, compared with 69.3 days (revised) for the same period a year ago.

Regional MLS sales and price information are 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.

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