C.A.R. Reports Sales Increased 18.1%; Median Home Price Fell 35.3% in May

RISMEDIA, June 27, 2008-Home sales increased 18.1% in May in California compared with the same period a year ago, while the median price of an existing home fell 35.3%, the California Association of Realtors® (C.A.R.) reported.

“Home sales exceeded 400,000 last month for the first time since early 2007. While this is a welcome sign for the market, it was due in part to the large share of distressed homes for sale in many parts of the state,” said C.A.R. President William E. Brown. “Sales also rose above their year ago levels for the second month in a row after 30 consecutive months of year-to-year decreases. The lower prices associated with distressed sales along with favorable interest rates both contributed to higher sales levels.”

Closed escrow sales of existing, single-family detached homes in California totaled 423,700 in May at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTORR associations statewide. Statewide home resale activity increased 18.1% from the revised 358,640 sales pace recorded in May 2007.

The statewide sales figure represents what the total number of homes sold during 2008 would be if sales maintained the May 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 May 2008 was $384,840, a 35.3% decrease from the revised $594,530 median for May 2007, C.A.R. reported. The May 2008 median price fell 4.7% compared with April’s $403,870 median price.

“The statewide median price declined 35.3 percent to $384,840 in May, a record for year-to-year percentage decreases in the median, reflecting the effect of large numbers of short sales and foreclosures in the market,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “With the statewide median in the $585,000- to $595,000-range through August of last year, we expect the market to continue to experience large year-to-year adjustments through the summer, even if the median price holds steady over the next few months.”

Highlights of C.A.R.’s resale housing figures for May 2008:

- C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in May 2008 was 8.4 months, compared with 10.7 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 6.04% during May 2008, compared with 6.26% in May 2007, according to Freddie Mac.
Adjustable-mortgage interest rates averaged 5.24% in May 2008, compared with 5.52% in May 2007.

- The median number of days it took to sell a single-family home was 49.7 days in May 2008, compared with 50.8 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 REALTORSR 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, 4.1%, or 15 out of 369 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 May 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=Mzg1Mjg.

Statewide, the 10 cities with the highest median home prices in California during May 2008 were: Los Altos, $1,710,000; Burlingame, $1,700,500; Saratoga, $1,506,500; Mill Valley, $1,475,000; Los Gatos, $1,350,000; Newport Beach, $1,250,000; Cupertino, $1,172,500; Santa Barbara, $1,066,000; Rancho Palos Verdes, $950,000; San Carlos, $900,000.

Statewide, the 10 cities with the greatest median home price increases in May 2008 compared with the same period a year ago were: Sonoma, 61%; Cupertino, 16.7%; Mill Valley, 14.6%; Los Gatos, 10.2%; Sunnyvale, 4.7%; Fullerton, 3%; Burlingame, 2.1%; Santa Barbara, 2%; Los Altos, 1.8%; Folsom, 0.5%.

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