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

LOS ANGELES (August 24, 2010) – 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
Region	Trough Month	Trough Price	Jul-10 Median	% Chg From Trough
San Francisco Bay Area	Feb-09	$399,040	$607,510	52.20%
Monterey Region	Feb-09	$241,130	$344,740	43.00%
Santa Clara	Feb-09	$445,000	$630,000	41.60%
Palm Springs/Lower Desert	Apr-09	$150,140	$194,320	29.40%
CALIFORNIA	Feb-09	$245,230	$314,850	28.40%
Ventura	Feb-09	$359,630	$444,230	23.50%
Riverside/San Bernardino	Apr-09	$156,840	$190,870	21.70%
Orange County	Jan-09	$423,100	$514,180	21.50%
High Desert	May-09	$106,210	$128,950	21.40%
San Diego	Mar-09	$326,830	$389,440	19.20%
Northern Wine Country	Feb-09	$310,950	$367,690	18.20%
Los Angeles	Mar-09	$295,100	$345,410	17.00%
San Luis Obispo	Apr-09	$338,160	$383,720	13.50%
Sacramento	Apr-09	$167,340	$186,180	11.30%
Northern California	May-09	$243,200	$247,520	1.80%

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
Region	Peak Month	Peak Price	Jul-10 Median	% Chg From Peak
High Desert	Apr-10	$334,860	$128,950	-61.50%
Monterey Region	Aug-10	$798,210	$344,740	-56.80%
Riverside/San Bernardino	Jan-10	$415,160	$190,870	-54.00%
Sacramento	Aug-10	$394,450	$186,180	-52.80%
Palm Springs/Lower Desert	Jun-10	$393,370	$194,320	-50.60%
CALIFORNIA	May-10	$594,530	$314,850	-47.00%
Northern California	Aug-10	$440,420	$247,520	-43.80%
Northern Wine Country	Jan-10	$645,080	$367,690	-43.00%
Los Angeles	Aug-10	$605,300	$345,410	-42.90%
San Luis Obispo	Jun-10	$620,540	$383,720	-38.20%
Ventura	Aug-10	$710,910	$444,230	-37.50%
San Diego	May-10	$622,380	$389,440	-37.40%
Orange County	Apr-10	$747,260	$514,180	-31.20%
San Francisco Bay Area	May-10	$853,910	$607,510	-28.90%
Santa Clara	Apr-10	$868,410	$630,000	-27.50%

“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)
Price Range (Thousand)	Jul-10	Jun-10	Jul-09
$1 million+	10.4	9.2	10.1
$750-1 million	6.7	5.9	5.4
$500-750,000	6.0	4.8	4.0
$300-500,000	5.5	4.2	3.7
$0-300,000	5.1	3.0	3.3

Highlights of C.A.R.’s resale housing figures for July 2009:

• 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 may be exaggerated due to compositional changes in housing demand.

Statewide, the 10 cities and communities with the highest median home prices in California during July 2009 were:

Statewide, the cities and communities with the greatest median home price increases in July 2009 compared to the same period a year ago were:

August 2010 Regional Sales and Price Activity*

*Regional Sales Data and Condo Sales Data Not Seasonally Adjusted

* Based on closed escrow sales of single‑family, detached homes only (no condos).  Reported month‑to‑month changes in sales activity may overstate actual changes because of the small size of individual regional samples.  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.

Median Prices By Region - Current Month vs. Year Ago

sf = single‑family, detached home
r - revised
na - not available

Source: California Association of REALTORS®

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