California Home Sales Down 19.6% Year-over-year in October

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According to the California Association of Realtors (C.A.R.), California home sales declined in October, from both the previous month and previous year.

Statewide home resale activity declined 3.5 percent in October to a seasonally adjusted annualized rate of 450,360; down from September's revised pace of 466,930, according to information collected by C.A.R. from more than 90 local Realtor associations statewide.  The October pace was down 19.6 percent from the revised 560,390 sales pace recorded in October 2009.   The statewide sales figure represents what would be the total number of homes sold during 2010 if sales maintained the September pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

"October's home sales figures reflect the seasonal decline in sales that typically occurs this time of year.  Additionally, persistent worries about the economy and job security are affecting home sales, despite low mortgage rates and strong affordability," said C.A.R. President Beth L. Peerce.  "The significant year-over-year sales decline also reflects particularly strong sales in October and November 2009, as buyers rushed to beat the then-anticipated federal tax credit expiration at the end of November 2009," said Peerce.

The median price of an existing, single-family detached home sold in California during October was $304,220, down 1.8 percent from September's $309,720 revised median price.  October's median price was up 2.3 percent from the $297,500 median price recorded for the same period a year ago, marking 12 consecutive months of year-over-year price gains.

"We're really seeing two different housing markets - one at the lower-end driven by first-time buyers and investors, which is keeping prices stable, and one with nostalgic sellers who set unrealistic asking prices," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  "Sellers need to consider current market conditions when pricing their home in order to facilitate a shorter time on the market," she said.

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

• C.A.R.'s Unsold Inventory Index for existing, single-family detached homes increased slightly to 6.5 months in October from 6.1 months in September.  The index was 4.2 months in October 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 4.23 percent during October 2010, compared with 4.95 percent in October 2009, according to Freddie Mac. Adjustable-mortgage interest rates averaged 3.46 percent in October 2010, compared with 4.55 percent in October 2009.

• The median number of days it took to sell a single-family home was 53.4 days in October 2010 compared with 34.1 days for the same period a year ago.

• Statewide, the 10 cities with the highest median home prices in California during October 2010 were: Los Altos, $1,700,000; Newport Beach, $1,100,000; Palo Alto, $1,050,000; Cupertino, $1,022,500; Los Gatos, $1,000,000; Rancho Palos Verdes, $900,000; Santa Barbara, $864,000; Arcadia, $856,000; Santa Monica, $810,000; and Danville, $770,000.

• Statewide, the cities with the greatest median home price increases in October 2010 compared with the same period a year ago were: Yucca Valley, 40 percent; Arcadia, 40 percent; Compton, 29 percent; San Bernardino, 29 percent; Highland, 28 percent; Poway, 23 percent; Pomona, 21 percent; Ceres, 18 percent; Colton, 18 percent; and Escondido, 18 percent.

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