Mike’s Real Estate Show

C.A.R. reports sales decrease 29.9 percent in July, median price of a home in California at $567,360, up 5.1 percent from year ago

LOS ANGELES (Aug. 24) – Home sales decreased 29.9 percent in July in California compared with the same period a year ago, while the median price of an existing home increased 5.1 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

Closed escrow sales of existing, single-family detached homes in California totaled 453,980 in July 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 decreased 29.9 percent from the 647,910 sales pace recorded in July 2005.

The statewide sales figure represents what the total number of homes sold during 2006 would be if sales maintained the July 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 July 2006 was $567,360, a 5.1 percent increase over the revised $539,840 median for July 2005, C.A.R. reported. The July 2006 median price decreased 1.5 percent compared with June’s $575,800 median price.

“Today’s market is slowing as sellers maintain often unrealistic pricing expectations and buyers have more properties to choose from,” said C.A.R. President Vince Malta. “In addition, unlike the slowdown we experienced in the 1990s, homeowners today are not under duress to sell due to job losses. The urgency that characterized the market for the last few years is now gone for all but well-priced properties.”

“With inventory levels double that of a year ago, annual price appreciation for the state slowed from the double-digit rates we experienced throughout all of last year to single digits this year,” he said. “And in some regions of the state prices are down from a year ago. However, with a 7.5-month supply of homes for sale in July, we’re far below the peak of February 1991, when there was an 18-month supply on the market.”

“Many markets in California are mirroring other major metropolitan areas of the nation.—a return to a more sustainable and balanced housing market compared to the frenetic pace of the past several years,” said C.A.R. Chief Economist Leslie Appleton-Young. “We’ve known that double-digit appreciation would eventually change when the underlying fundamentals change, which has been the case with expanded supply and rising interest rates. Affordability concerns prompted by higher prices and interest rate increases also are constraining sales. The monthly home payment has increased by 20 percent for many households in the state compared with last year.”

Highlights of C.A.R.’s resale housing figures for July 2006:

. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in July 2006 was 7.5 months, compared with 2.9 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 6.76 percent during July 2006, compared with 5.70 percent in July 2005, according to Freddie Mac. Adjustable mortgage interest rates averaged 5.79 percent in July 2006 compared with 4.40 percent in July 2005.

. The median number of days it took to sell a single-family home was 49 days in July 2006, compared with 29 days (revised) for the same period a year ago.

Regional MLS sales and price information is 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.

In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 72 percent, or 283 out of 393 cities and communities showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. (The top 10 lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.)

Note:  Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices may be exaggerated due to compositional changes in housing demand. The DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. Online at  http://www.car.org/index.php?id=MzY0OTY=.

. Statewide, the 10 cities and communities with the highest median home prices in California during July 2006 were: Los Altos, $1,652,000; Manhattan Beach, $1,457,750; Burlingame, $1,425,000; Newport Beach, $1,375,000; Rancho Palos Verdes, $1,200,000; Mill Valley, $1,198,000; Lafayette, $1,170,000; Calabasas, $1,138,750; Santa Barbara, $1,047,500; Los Gatos, $1,030,000.

. Statewide, the 10 cities and communities with the greatest median home price increases in July 2006 compared with the same period a year ago were: Taft, 58.1 percent; Hercules, 35.1 percent; Morgan Hill, 33 percent; Barstow, 32.1 percent; Mill Valley, 31.3 percent; San Juan Capistrano, 29.7 percent; Loma Linda, 28.3 percent; Lodi, 24.9 percent; Compton, 24.8 percent; Laguna Niguel, 24.8 percent; Inglewood, 24.3 percent.

Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 195,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.