California Home Sales Decrease 27.8% in April (article)

The median price of an existing single-family home in California increased 6.2 percent in April and sales decreased 27.8 percent compared with the same period a year ago, C.A.R. recently reported. "April sales fell in part because of tighter credit standards and growing concerns about the impact of subprime loans on the market," said C.A.R. President Colleen Badagliacco.

"Throughout the state inventory levels have increased to their highest levels in recent years, giving buyers more time to view a greater variety of homes and sellers who set realistic prices an edge in the market."According to the report, the median price of an existing, single-family detached home in California during April was $597,640, a 6.2 percent increase over the revised $562,820 median for April 2006.

Also last month, closed escrow sales of existing, single-family detached homes in California totaled 373,280 at a seasonally adjusted annualized rate, down 27.8 percent compared with the sales pace recorded one year earlier and down 13.3 percent from home resale activity in March 2007."

Although the median price of a home in California continues to rise, this reflects the fall-off in sales in the lower-priced markets of the state where new home inventories and foreclosures are competing with the existing home market," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Fewer sales from these regions coupled with modest gains in some of the stronger coastal markets are pushing the median price for the state up slightly."

**Taken from the California Association of Realtors Bulletin, dated May 30, 2007.