C.A.R. REPORTS HOME SALES DECREASE 12.6 PERCENT IN JANUARY

The median price of an existing single-family home in California increased 1.9 percent in January and sales decreased 12.6 percent compared with the same period a year ago, C.A.R. reported yesterday.

"After holding steady in the range of 450,000 units on a seasonally adjusted annual basis since July of last year, home sales activity was slightly lower in January," said C.A.R. President Colleen Badagliacco. "On a regional basis, sales fell an average of 13 percent, while median prices declined in all areas except Los Angeles, the San Francisco Bay Area, and Riverside/San Bernardino."

According to the report, the median price of an existing, single-family detached home in California during January was $559,640, a 1.9 percent increase over the revised $549,460 median for January 2006.

Also last month, closed escrow sales of existing, single-family detached homes in California totaled 437,580 at a seasonally adjusted annualized rate, down 12.6 percent compared with the sales pace recorded one year earlier and down 3.2 percent from home resale activity in December 2006.

"The unsold inventory of existing homes jumped to 9.1 months in January, after hovering around the long-run average of 7 months since mid-2006," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "There was a slight increase in statewide listings last month, which is characteristic of the start of the year. However, listings remained near the long-run average. As such, the increase in the unsold inventory index--the ratio of listings to sales--was driven primarily by the sales decline."

**Taken from the California Association of Realtors Bulletin, dated February 28th, 2007.