Tuesday, Feb. 27, 2007C.A.R. reports sales decrease 12.6 percent in January, median price of a home in California at $559,640, up 1.9 percent from year ago

LOS ANGELES (Feb. 27) – Home sales decreased 12.6 percent in January in California compared with the same period a year ago, while the median price of an existing home increased 1.9 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

“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.”

Closed escrow sales of existing, single-family detached homes in California totaled 437,580 in January 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 12.6 percent from the 500,470 sales pace recorded in January 2006.

The statewide sales figure represents what the total number of homes sold during 2007 would be if sales maintained the January 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 January 2007 was $559,640, a 1.9 percent increase over the revised $549,460 median for January 2006, C.A.R. reported. The January 2007 median price decreased 1.7 percent compared with December’s revised $569,560 median price.

“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.”

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

. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in January 2007 was 9.1 months, compared with 5.7 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 6.22 percent during January 2007, compared with 6.15 percent in January 2006, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.47 percent in January 2007 compared with 5.17 percent in January 2006.

. The median number of days it took to sell a single-family home was 75 days in January 2007, compared with 48 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, 42.3 percent, or 145 out of 343 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 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=MzcxMDk.

. Statewide, the 10 cities and communities with the highest median home prices in California during January 2007 were: Los Gatos, $1,400,000; Manhattan Beach, $1,269,000; Danville, $970,000; Morgan Hill, $907,000; Santa Barbara, $900,000; Santa Monica, $880,000; Yorba Linda, $819,000; San Ramon, $760,000; Laguna Niguel, $759,000; San Rafael, $758,000.

. Statewide, the 10 cities and communities with the greatest median home price increases in January 2007 compared with the same period a year ago were: Laguna Niguel, 55.9 percent; Santa Clarita, 30.8 percent; Los Gatos, 30.2 percent; Grass Valley, 17.1 percent; Rancho Mirage, 16.7 percent; Glendale, 14.2 percent; La Mesa, 13.6 percent; Santa Monica, 13.5 percent; Carson, 13 percent; Yucaipa, 12.7 percent.

January 2007 Regional Sales and Price Activity*
Regional and Condo Sales Data Not Seasonally Adjusted

na – not available

*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.

sf = single family, detached home

Source:  CALIFORNIA ASSOCIATION OF REALTORS® 

Median Prices By Region – Current Month vs. Year Ago

na – not available
r – revised
Source:  CALIFORNIA ASSOCIATION OF REALTORS®