California Home Sales in August Uptick 8.6%, Median Price Now Highest in 2011

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According to the California Association of Realtors (CAR), California home sales posted an increase from both the previous month and previous year in August, while the median home price rose to its highest level this year.

Closed escrow sales of existing, single-family detached homes in California rose to a seasonally adjusted 497,390 units in August, up 8.6 percent from a revised 457,930 in July, according to information collected by C.A.R. from more than 90 local Realtor associations and MLSs statewide.  August home sales were up 10.2 percent from the revised 451,520 units sold during the like period a year ago.  The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the August pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

"August's median price marked the highest since December 2010, signifying that prices may be stabilizing in some market segments, as investors and first-time buyers continue to see value and opportunity in the market," said C.A.R. President Beth L. Peerce.

The August statewide median price of an existing, single-family detached home sold in California was $297,060, up 1 percent from a revised $294,050 in July, but down 7.4 percent from the $320,860 median price recorded for August 2010.

"While the increase in August sales is encouraging, these sales are based on closings that occurred before the debt ceiling debate in early August and subsequent heightened concern about the future direction of the economy," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "How these events and the impending reduction in the conforming loan limits will impact home sales and prices in the coming months remains to be seen."

Other aspects of C.A.R.'s resale housing report for August 2011 include:

• The Unsold Inventory Index for existing, single-family detached homes was 5 months in August, down from 5.5 months in July and down from a revised 5.8 months in August 2010.  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 4.27 percent during August 2011, down from 4.43 percent in August 2010, according to Freddie Mac.  Adjustable-mortgage interest rates averaged 2.93 percent in July 2011, compared with 3.53 percent in August 2010.

• The median number of days it took to sell a single-family home was 52.7 days in August 2011, compared with 45.5 days for the same period a year ago.

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