Favorable market conditions, economic improvement lead to increased home sales, higher median price

LOS ANGELES, CA – April 14, 2011 – (RealEstateRama) — Improvement in the overall economy and favorable market conditions led to increases in both the median price and home sales in March, according to data from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 514,090 units in March, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  Sales in March increased 3.1 percent month-over-month and 1.5 percent year-to-year, aligning with C.A.R. sales expectations for 2011.  The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the March pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

“For the first time in many months, we are seeing a genuine improvement in the overall economy, especially with respect to jobs,” said C.A.R. President Beth L. Peerce.  “However, while interest rates and current home prices are favorable, uncertainty about whether the economy has stabilized, concerns about inflation, and an unresolved state budget have created hesitation among buyers.”

The statewide median price of an existing, single-family detached home sold in California increased 5.4 percent in March compared with February to $286,010, but declined 4.9 percent compared with March 2010’s median price of $300,900.

“While March’s median home price declined year-over-year , the decline can be attributed partly to an increase in distressed sales in recent months, and to last year’s federal home buyer tax credit, which pushed both sales and home prices higher,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “As for market activity, the pace of sales for the first three months of this year is in line with our expectations for all of 2011.”

Highlights of C.A.R.’s resale housing report for March 2011:

• The Unsold Inventory Index for existing, single-family detached homes was 5.3 months in March, down from 7.3 months in February 2011, but up compared with March 2010’s 4.8-month supply. 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 4.84 percent during March 2011, compared with 4.97 percent in March 2010, according to Freddie Mac. Adjustable-mortgage interest rates averaged 3.22 percent in March 2011, compared with 4.20 percent in March 2010.
• The median number of days it took to sell a single-family home was 56.7 days in March 2011, compared with 37 days for the same period a year ago.
• View Unsold Inventory by price point.

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS®   throughout the state, and represent statistics of existing single-family detached homes only.  County sales data are not adjusted to account for seasonal factors that can influence home sales.  Movements in sales prices should not be interpreted as changes in the cost of a standard home.  Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold.  Due to the low sales volume in some areas, median price changes may exhibit unusual fluctuation.

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 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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March 2011 County Sales and Price Activity
Regional and Condo Sales Data Not Seasonally Adjusted

March 2011 County Unsold Inventory and Time on Market
Regional and Condo Sales Data Not Seasonally Adjusted

March 2011 County Unsold Inventory and Time on Market
Regional and Condo Sales Data Not Seasonally Adjusted