C.A.R. reports July median price increased 10.4 percent; home sales decreased 20.8 percent

LOS ANGELES, CA – August 25, 2010 – (RealEstateRama) —  California home sales decreased 20.8 percent in July compared with the same period a year ago, while the median price of an existing home rose 10.4 percent from July 2009, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

“July’s sales decrease was not unexpected, given the strong sales activity we saw in May when buyers took advantage of expiring federal and state home buyer tax credits,” said C.A.R. President Steve Goddard. “This likely pulled forward sales that otherwise would have closed in June or July.  ”Even without tax incentives, buyers waiting on the sidelines should take advantage of historically low interest rates and current home prices,” he said.

Closed escrow sales of existing, single-family detached homes in California totaled 440,370 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 20.8 percent from the revised 555,780 sales pace recorded in July 2009. Sales in July 2010 decreased 10.9 percent compared with the previous month.

Trough vs. Current Price – July 2010

The statewide sales figure represents what the total number of homes sold during 2010 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 year-over-year statewide median home price posted its ninth consecutive gain and seventh consecutive double-digit gain in July.  The median price of an existing, single-family detached home in California during July 2010 was $314,850, a 10.4 percent increase from the revised $285,310 median for July 2009, C.A.R. reported. The July 2010 median price was up 0.9 percent compared with June’s $311,950 median price.

Peak vs. Current Price – July 2010

“The statewide median home price continues to hold steady, thanks to strong sales in the upper-price range, said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “However, we will likely see a slowdown in price appreciation for the remainder of the year as weaker sales will drive inventory higher,” she said.

Unsold Inventory Index (Months)

Highlights of C.A.R.’s resale housing figures for July 2010:

• C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in July 2010 rose to 5.8 months, compared with 4.0 months in July 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 4.56 percent during July 2010, compared with 5.22 percent in July 2009, according to Freddie Mac. Adjustable-mortgage interest rates averaged 3.73 percent in July 2010, compared with 4.82 percent in July 2009.
• The median number of days it took to sell a single-family home was 44.2 days in July 2010, compared with 39.9 days for the same period a year ago.

Regional MLS sales and price information are 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, 209 of the 352 cities and communities reporting 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 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 for July 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/marketdata/historicalprices/2010medianprices/jul2010/.

• Statewide, the 10 cities with the highest median home prices in California during July 2010 were: Beverly Hills, $1,677,500; Los Altos, $1,560,000; Saratoga, $1,490,000; Manhattan Beach, $1,490,000; Palo Alto, $1,317,500; Palos Verdes Estates, $1,200,000; Newport Beach, $1,187,000; Los Gatos, $1,147,500; Mill Valley, $972000; Rancho Palos Verdes, $920,000; Santa Monica, $920,000; and Cupertino, $885,000.
• Statewide, the cities with the greatest median home price increases in July 2010 compared with the same period a year ago were: Banning, 50 percent; San Bernardino, 45.7 percent; Poway, 35.5 percent; Encinitas, 30.4 percent; Colton, 30 percent; Tulare, 27 percent; Compton, 25.9 percent; La Puente, 25.7 percent; Glendale, 25 percent; and Lake Forest, 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 nearly 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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July 2010 Regional Sales and Price Activity*
Regional and Condo Sales Data Not Seasonally Adjusted

na – not available

* Based on closed escrow sales of single family, detached homes only (no condos).

Movements in sales prices should not be interpreted as measuring changes in the cost of a standard home.  Prices are influenced by changes in cost and changes in the characteristics and size of homes actually sold.

sf = single family, detached home

Source:  CALIFORNIA ASSOCIATION OF REALTORS®

Median Prices By Region – Current Month vs. Year Ago

na – not available

r – revised

Source: CALIFORNIA ASSOCIATION OF REALTORS®

Multimedia:

• Click here view a video of C.A.R. Chief Economist Leslie Appleton-Young discuss highlights of the July sales and price report.
• Click here to view Unsold Inventory by price point.
• Click here to view a data table comparing current prices with trough prices in areas throughout the state.

Quick Facts:

• Existing, single-family home sales decreased 20.8 percent in July to a seasonally adjusted rate of 440,370 units on an annualized basis compared with July 2009.
• The statewide median price of an existing single-family home increased 10.4 percent in July to $314,850 compared with July 2009.
• C.A.R.’s Unsold Inventory Index rose to 5.8 months in July compared with 4.0 months in July 2009.