May sales and price report

LOS ANGELES, CA – June 16, 2011 – (RealEstateRama) — A weak economy and tightened financing conditions contributed to a slowdown in California home sales and median price during May, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 471,840 units in May, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  May home sales were down 5.8 percent from April and down 14.4 percent from the previous year.  The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the May pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

“Market demand has been sluggish as would-be home buyers remain concerned about the direction of the economy. They may also be weary of delays in the buying process and difficulty in getting a home loan,” said C.A.R. President Beth L. Peerce.  “This, combined with lenders putting distressed properties on the market at a more deliberate pace, is contributing to homes sitting on the market longer.”

The statewide median price of an existing, single-family detached home sold in California edged down 0.7 percent in May to $291,760 from a revised $293,800 in April.  May’s median price was down 10.9 percent from the $327,460 recorded in May 2010.

“May’s sales decline was not unexpected because of a sharp decrease in April pending sales and an unusually strong performance last May, when expiring tax credits pushed home sales and prices to extremely high levels,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “The monthly decline in sales and the median home price reflect the slowdown in the economic recovery over the past couple of months, which has affected virtually all aspects of consumer spending.”

Other highlights of C.A.R.’s resale housing report for May 2011:

• The Unsold Inventory Index for existing, single-family detached homes was 5.4 months in May, unchanged from April, but up compared with May 2010’s 4.5-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 4.64 percent during May 2011, down from 4.89 percent in May 2010, according to Freddie Mac. Adjustable-mortgage interest rates averaged 3.13 percent in May 2011, compared with 4.01 percent in May 2010.
• The median number of days it took to sell a single-family home was 51.8 days in May 2011, compared with 37.8 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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May 2011 County Sales And Price Activity – Existing Single-Family Detached Homes

*  Los Angeles Metropolitan Area is a 5-county region that includes Los Angeles County, Orange County, Riverside County, San Bernardino County, and Ventura County
*  S.F. Bay Area has been redefined to include the following counties: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma
*  Inland Empire includes Riverside County and San Bernardino County

Regional/County sales data and condo sales data not seasonally adjusted.

The MLS median price and sales data for detached homes are generated from a survey of more than 90 associations of REALTORS® and MLSs throughout the state, representing 90 percent of the market. County sales data are not adjusted to account for seasonal factors that can influence home sales. 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 an condominiums represents closed escrows. 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 and in the characteristics and size of homes sold. Due to low sales volume in some areas, median price changes may exhibit unusual fluctuation. C.A.R.’s data has been standardized to reflect county-level statistics.