Regional Spotlight: CAR Reports Median Price at $586,030, up 3.2% from Last Year

RISMEDIA, August 29, 2007-Home sales decreased 22.7% in July in California compared with the same period a year ago, while the median price of an existing home increased 3.2%, the California Association of Realtors ® (C.A.R.) reported this week.

“The decline in sales we experienced in July continues to be driven by both tighter underwriting standards since the start of the year and the adverse psychological impact of news and information regarding increases in foreclosures and the subprime situation,” said C.A.R. President Colleen Badagliacco. “Although the median price posted an increase statewide, there is a disparity between the lower-priced or entry-level markets where prices generally are soft at best and sales have declined sharply, and some higher priced markets that continue to experience price appreciation along with somewhat smaller decreases in sales.”

Closed escrow sales of existing, single-family detached homes in California totaled 350,980 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 22.7% from the 453,980 sales pace recorded in July 2006.

The statewide sales figure represents what the total number of homes sold during 2007 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 median price of an existing, single-family detached home in California during July 2007 was $586,030, a 3.2% increase over the revised $567,860 median for July 2006, C.A.R. reported. The July 2007 median price decreased 1.4% compared with June’s revised $594,280 median price.

“With credit drying up in recent weeks, we expect further weakness in sales over the next few months,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “It is too early to say how long the current credit crunch will continue, but we are hopeful that we will avoid a prolonged credit crisis that might cause sales to decline over a longer period of time.

“It is important to note that decline in sales is not driven by weakening economic conditions,” she said. “Rather, the statewide and national economies continue to move forward, with no recession on the horizon at this point in time.”

Highlights of C.A.R.’s resale housing figures for July 2007:

. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in July 2007 was 10.7 months, compared with 7.3 months (revised) for the same period a year ago. 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 6.7% during July 2007, compared with 6.76% in July 2006, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.71% in July 2007 compared with 5.79% in July 2006.
. The median number of days it took to sell a single-family home was 51.8 days in July 2007, compared with 47.7 days (revised) for the same period a year ago.

Regional MLS sales and price information is 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, 29.6%, or 110 out of 371 cities and communities, 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 top 10 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/index.php?id=Mzc2MzQ=.
. Statewide, the 10 cities and communities with the highest median home prices in California during July 2007 were: Los Altos, $1,783,000; Manhattan Beach, $1,628,500; Burlingame, $1,500,000; Newport Beach, $1,450,000; Saratoga, $1,414,000; Palos Verdes Estates, $1,386,500; Lafayette, $1,274,500; Orinda, $1,242,500; Calabasas, $1,220,000; Rancho Palos Verdes, 1,135,000.
. Statewide, the 10 cities and communities with the greatest median home price increases in July 2007 compared with the same period a year ago were: Novato, 19%; Culver City, 18%; Ridgecrest, 14.2%; Glendale, 12.4%; Manhattan Beach, 11.7%; San Marcos, 11.2%; Redondo Beach, 11%; Yorba Linda, 10.3%; Los Angeles, 9.9%; Saratoga, 9.6%.

For more information, visit www.car.org.