C.A.R. reports June median price increased 13.6 percent; home sales decreased 4.2 percent

LOS ANGELES, CA – July 23, 2010 – (RealEstateRama) — Home sales decreased 4.2 percent in June in California compared with the same period a year ago, while the median price of an existing home rose 13.6 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

“Buyers who scrambled to close escrow in May to take advantage of federal and state tax credits before they expired impacted the number of homes sold last month,” said C.A.R. President Steve Goddard. “Although we expect sales to be lower in the second half of the year because of the absence of the government stimulus, they should remain above the long-run average and be significantly higher than the trough in 2007, when sales bottomed out.

“Although the tax credits are no longer available, it’s important to keep in mind that home prices are substantially below their peaks and interest rates remain at historic lows, making this a very affordable time for many first-time buyers to purchase a home of their own,” he said.

Closed escrow sales of existing, single-family detached homes in California totaled 492,800 in June 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 4.2 percent from the revised 514,230 sales pace recorded in June 2009. Sales in June 2010 decreased 11.1 percent compared with the previous month.

Trough vs. Current Price – June 2010

The statewide sales figure represents what the total number of homes sold during 2010 would be if sales maintained the June 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 June 2010 was $311,950, a 13.6 percent increase from the revised $274,640 median for June 2009, C.A.R. reported. The June 2010 median price decreased 3.8 percent compared with May’s $324,430 median price.

Peak vs. Current Price – June 2010

“As we anticipated, home prices have continued to post modest gains, due in large part to the lean inventory of homes for sale in many regions of the state,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “This has contributed to market stability and bodes well for the remainder of the year.

“We’re also seeing an increase in home sales at the higher-end of the market, a reflection of the slight thaw in jumbo financing, although there still is a long way to go before jumbo loans are readily available to qualified buyers,” she said.

Unsold Inventory Index (Months)

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

• C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in June 2010 rose to 4.8 months, compared with 4.2 months in June 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 4.74 percent during June 2010, compared with 5.42 percent in June 2009, according to Freddie Mac. Adjustable-mortgage interest rates averaged 3.86 percent in June 2010, compared with 4.93 percent in June 2009.
• The median number of days it took to sell a single-family home was 43.3 days in June 2010, compared with 44.3 days (revised) 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, 232 of the 372 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 June June 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://car.org/marketdata/historicalprices/2010medianprices/jun2010medianprices/.

• Statewide, the 10 cities with the highest median home prices in California during June 2010 were: Manhattan Beach, $1,737,500; Los Altos, $1,618,500; Saratoga, $1,425,000; Palo Alto, $1,308,500; Laguna Beach, $1,230,500; Newport Beach, $1,150,000; Los Gatos, $1,045,000; Rancho Palos Verdes, $1,000,000; Cupertino, $980,000; and Lafayette, $946,250.
• Statewide, the cities with the greatest median home price increases in June 2010 compared with the same period a year ago were: National City, 59 percent; Newport Beach, 52 percent; Richmond, 52 percent; San Bernardino, 47 percent; San Pablo, 38 percent; Fairfield, 37 percent; Walnut, 34 percent; Colton, 32 percent; Imperial Beach, 31 percent; and Poway, 30 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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June 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 to view a video of C.A.R. Chief Economist Leslie Appleton-Young discuss highlights of the June 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 4.2 percent in June to a seasonally adjusted rate of 492,800 units on an annualized basis compared with June 2009.
• The statewide median price of an existing single-family home increased 13.6 percent in June to $311,950 compared with June 2009.
• C.A.R.’s Unsold Inventory Index rose to 4.8 months in June compared with 4.2 months in June 2009.