California Home Sales Increased 35.2 Percent; Median Home Prices Declined 30.4 Percent, Says C.A.R.

---

(News Source: California Association of Realtors)

(LOS ANGELES, CA) -- Home sales increased 35.2 percent in May in California compared with the same period a year ago, while the median price of an existing home declined 30.4 percent, the California Association of Realtors (C.A.R.) reported today.

"With affordability for first-time buyers at a record high, sales of existing, single-family homes continued to remain above the 500,000 level for the ninth consecutive month," said C.A.R. President James Liptak. 

"Buyers are beginning to realize that the combination of favorable home prices, historically low mortgage rates, and first-time home buyer tax credits, may not align again for many years."

Quick Facts:

• Existing, single-family home sales increased 35.2 percent in May to a seasonally adjusted rate of 556,590 on an annualized basis.

• The statewide median price of an existing single-family home increased 4.2 percent in May to $267,570, compared with April 2009.

• C.A.R.'s Unsold Inventory Index fell to 4.2 months in May, compared with 8.7 months in May 2008.

"The sales gains over last year have diminished in recent months," he added.  "This trend is expected to continue through the end of the year, as limited inventory at the moderate and low end of the market constrains sales activity," he said.

Closed escrow sales of existing, single-family detached homes in California totaled 556,590 in May 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 35.2 percent from the revised 411,770 sales pace recorded in May 2008. Sales in May 2009 increased 2.9 percent compared with the previous month.

The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the May 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 May 2009 was $267,570, a 30.4 percent decrease from the revised $384,540 median for May 2008, C.A.R. reported. The May 2009 median price rose 4.2 percent compared with April's $256,700 median price.

"The statewide median price rose for the third consecutive month in May, posting the largest monthly increase on record for the month of May, according to statistics dating back to 1979," said C.A.R. Chief Economist Leslie Appleton-Young.  "Nearly all regions in the state reported positive month-to-month changes in median price. 

"Inventory levels are well below the long-run average of seven months, which may account for the increase in median price," added Appleton-Young.  "Although the state continues to operate in a bifurcated market, improved access to lending and price adjustments have led to increased activity in the high-end segment," she added.



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

• C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in May 2009 was 4.2 months, compared with 8.7 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 4.86 percent during May 2009, compared with 6.04 percent in May 2008, according to Freddie Mac. Adjustable-mortgage interest rates averaged 4.75 percent in May 2009, compared with 5.24 percent in May 2008.

• The median number of days it took to sell a single-family home was 53.5 days in May 2009, compared with 49.2 days (revised) for the same period a year ago.

• Statewide, the 10 cities with the highest median home prices in California during May 2009 were: Los Altos, $1,484,000; Palo Alto, $1,400,000; Cupertino, $965,000; Santa Barbara, $870,750; Danville, $785,500; Los Gatos, $769,500; Newport Beach, $767,500; Santa Monica, $740,000; Arcadia, $700,000; and Campbell, $691,000.

• Statewide, the cities with the greatest median home price increases in May 2009 compared with the same period a year ago were:  Poway, 29.7 percent; Auburn, 8.3 percent; Arcadia, 7.5 percent; Atascadero, 6.3 percent; Cypress, 5.0 percent; Palo Alto, 4.9 percent; Campbell, 4.7 percent; Walnut, 2.3 percent; and Torrance, 0.4 percent.

California Median Home Sale Prices - May 2009

---