June Housing
Report (CAR) -
37.7% Price Drop
07/25/2008 (Los Angeles) - Home sales increased 17.5
percent in June in California compared with the same period a
year ago, while the median price of an existing home fell 37.7
percent, the CALIFORNIA ASSOCIATION OF REALTORSŪ (C.A.R.)
reported today.
Statewide home sales
remained above the 400,000 level for the second month in a
row, and up nearly 18 percent from a year ago, said C.A.R.
President William E. Brown. Following a 30-month string of
year-to-year percentage decreases that began in October 2005,
sales last month also posted their third consecutive
year-to-year gain.
Sales were driven in part by large shares of deeply discounted
distressed sales in many parts of the state, he said. With
lower prices and favorable interest rates, affordability also
has improved significantly in recent months, paving the way
for many buyers to purchase their first home.
Closed escrow sales of existing, single-family detached homes
in California totaled 420,550 in June at a seasonally adjusted
annualized rate, according to information collected by C.A.R.
from more than 90 local REALTORŪ associations statewide.
Statewide home resale activity increased 17.5 percent from the
revised 357,890 sales pace recorded in June 2007.
The statewide sales figure represents what the total number of
homes sold during 2008 would be if sales maintained the June
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 June 2008 was $368,250, a 37.7 percent
decrease from the revised $591,280 median for June 2007,
C.A.R. reported. The June 2008 median price fell 4.3 percent
compared with May's $384,840 median price.
The significant declines in the median price over the past
several months are largely due to a dramatic shift in the
sales mix since the onset of the credit crunch and the
increase in the share of distressed sales, said C.A.R. Chief
Economist Leslie Appleton-Young. A year ago, the under
$500,000 price range accounted for 40 percent of sales, the
middle segment made up about 45 percent, and the over $1
million segment captured 15 percent of the market. As of June
2008, the shares had shifted to 67 percent, 24 percent, and 9
percent, respectively.
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