California's November Home Sales Up 9.2% Over October, But Short Sales on the Increasing

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According to the California Association of Realtors (C.A.R.), California home sales rose in November, but were down from the previous year. The statewide median price declined from both the previous month and previous year.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 490,950 in November, according to information collected by C.A.R. from more than 90 local Realtor associations statewide.  November's sales were up 9.2 percent from October's revised pace of 449,480 but were down 8.6 percent from the revised 536,940 sales pace recorded in November 2009.  The statewide sales figure represents what would be the total number of homes sold during 2010 if sales maintained the November pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

"We are encouraged by November's sales increase, but realize a more sustained recovery is being hampered by the distressed market," said C.A.R. President Beth L. Peerce.  "While we are experiencing a greater share of short sales, these transactions are notoriously difficult to navigate with no guarantee of closure.  A recent C.A.R. survey indicated that it takes many lenders 90 days or more simply to communicate whether a short sale has been accepted, causing tremendous frustration for buyers and sellers," she said.  "Moreover, the survey found that more than two out of five short sale transactions never close.  The housing market can't fully recover until lenders streamline and improve the short sales process, which would help expedite transactions," said Peerce.

The median price of an existing, single-family detached home sold in California fell below the $300,000 mark for the first time since February.  The November 2010 median price was $296,820, down 2.4 percent from October's $304,220 median price and down 2.5 percent from the revised $304,550 median price recorded for the same period a year ago.  It was the first year-over-year price decline in a year.

"Unsold inventory declined slightly in November, as the number of active listings fell from October, particularly for homes priced above $500,000", said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  "The decline in listings was reflective of seasonal factors and the foreclosure moratorium that took place in October," she said.

Here are other highlights of C.A.R.'s resale housing report for November 2010:

• C.A.R.'s Unsold Inventory Index for existing, single-family detached homes was 6.2 months in November, down from 6.5 months in October.  The index was 4.5 months in November 2009.  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 4.3 percent during November 2010, compared with 4.88 percent in November 2009, according to Freddie Mac. Adjustable-mortgage interest rates averaged 3.25 percent in November 2010, compared with 4.41 percent in November 2009.

• The median number of days it took to sell a single-family home was 54.7 days in November 2010, compared with 33.1 days for the same period a year ago.

• The 10 cities with the highest median home prices in California during November 2010 were:  Saratoga, $1,235,000; Newport Beach, $1,110,000; Laguna Beach, $1,107,500; La Jolla, $1,037,500; Los Gatos, $850,000; Cupertino, $850,000; Santa Monica, $849,000; Santa Barbara, $839,000; Danville, $720,000; San Francisco, $680,000; and Arcadia, $670,000.

• The cities with the greatest median home price increases in November 2010 compared with the same period a year ago were: San Juan Capistrano, 57 percent; San Bernardino, 24.3 percent; Thousand Oaks, 22.6 percent; Encinitas, 21 percent; Lake Forest, 16.8 percent; San Marcos, 14 percent; Montclair, 12.9 percent; Newport Beach, 12.6 percent; Compton, 12.5 percent; and Yucca Valley, 12.4 percent.

 

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