June Year Over Year Sales Increase by 17.5 Percent in California
July 28th, 2008 categories: Our Market
According to the California Association of Realtors, home sales increased 17.5 percent in June in California compared to the same period one year ago making June the third consecutive month to break what was a 30 month trend of decreasing sales. Statewide home sales remained above the 400,000 mark for the second month in a row. Sales were driven in part by deeply discounted or distressed properties along with favorable interest rates making it possible for first time buyers to get into a market that in recent years had been unaccessible.
The median price of an existing single family detached home in California during June was $368,250, a 37.7 percent decrease from the revised $591,280 for June 2007, CAR reported. June prices fell 4.3 percent from 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 shared had shifted to 67 percent, 24 percent, and 9 percent, respectively.”
Highlights of C.A.R.’s resale housing figures for June 2008:
- C.A.R.’s unsold inventory of single family detached homes in June was 7.7 months compared to the revised 10.2 months for June 2007
- Thirty-year fixed mortgage interest rates averaged 6.32 percent during June 2008 as compared to 6.66 percent in June 2007. Adjustable rate mortgages averaged 5.15 for June 2008 and 5.68 in June 2007
- The median number of days it took to sell a single family home was 49.1 days in June 2008 compared with 51.5 days (revised) for the same period one year ago
In a separate report generated by C.A.R. and DataQuick Information Systems, 2.9 percent, or 11 out of 385 cities and communities, showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records rather than MLS Information. (DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. Online at http://new.car.org/economics/historicalprices/2008medianprices/june2008medianprices/.
June 2008 Regional Sales and Price Activity*
Regional and Condo Sales Data Not Seasonally Adjusted
|
|
Median Price |
Percent Change in Price from Prior Month |
Percent Change in Price from Prior Year |
Percent Change in Sales from Prior Month |
Percent Change in Sales from Prior Year |
||
|
|
Jun-08 |
May-08 |
|
Jun-07 |
|
May-08 |
Jun-07 |
|
Statewide |
|
|
|
|
|
|
|
|
Calif. (sf) |
$368,250 |
-4.3% |
|
-37.7% |
|
-0.7% |
17.5% |
|
Calif. (condo) |
$343,500 |
-4.0% |
|
-23.4% |
|
-0.6% |
-20.8% |
|
C.A.R. Region |
|
|
|
|
|
|
|
|
Central Valley |
NA |
NA |
|
NA |
|
NA |
NA |
|
High Desert |
$180,570 |
-10.0% |
|
-41.0% |
|
4.9% |
71.0% |
|
Los Angeles |
$396,560 |
-6.1% |
|
-32.3% |
|
-8.3% |
1.7% |
|
Monterey Region |
$450,000 |
1.2% |
|
-39.7% |
|
28.8% |
39.7% |
|
Monterey County |
$359,900 |
0.5% |
|
-49.9% |
|
32.8% |
103.9% |
|
Santa Cruz County |
$610,000 |
-1.2% |
|
-19.8% |
|
22.4% |
-8.9% |
|
Northern California |
$341,400 |
1.0% |
|
-13.0% |
|
12.1% |
-1.4% |
|
Northern Wine Country |
$415,820 |
-6.0% |
|
-34.5% |
|
8.0% |
7.1% |
|
Orange County |
$560,900 |
7.1% |
|
-22.5% |
|
-4.1% |
18.1% |
|
Palm Springs/Lower Desert |
$277,970 |
-1.9% |
|
-29.4% |
|
-4.0% |
19.0% |
|
Riverside/San Bernardino |
$261,980 |
1.7% |
|
-32.5% |
|
4.8% |
75.4% |
|
Sacramento |
$220,630 |
-5.4% |
|
-37.3% |
|
14.1% |
95.5% |
|
San Diego |
NA |
NA |
|
NA |
|
6.9% |
-20.1% |
|
San Francisco Bay |
$676,740 |
-1.5% |
|
-19.8% |
|
3.8% |
-4.7% |
|
San Luis Obispo |
$487,500 |
10.2% |
|
-22.0% |
|
-3.8% |
-16.3% |
|
Santa Barbara County |
$364,280 |
-8.9% |
|
-54.8% |
|
1.8% |
6.8% |
|
Santa Barbara South Coast |
$1,035,000 |
-13.7% |
|
-24.5% |
|
-4.2% |
-25.8% |
|
North Santa Barbara County |
$290,620 |
-2.4% |
|
-31.1% |
|
4.0% |
50.7% |
|
Santa Clara |
$740,000 |
-3.9% |
|
-14.5% |
|
6.4% |
-6.8% |
|
Ventura |
$480,430 |
-1.5% |
|
-30.6% |
|
6.3% |
-15.7% |
na – not available*Based on closed escrow sales of single‑family, detached homes only (no condos). Reported month‑to‑month changes in sales activity in June 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
|
|
Jun-08 |
May-08 |
|
Jun-07 |
|
|
Statewide |
|
|
|
|
|
|
Calif. (sf) |
$368,250 |
$384,840 |
|
$591,280 |
r |
|
Calif. (condo) |
$343,500 |
$357,970 |
|
$448,550 |
r |
|
C.A.R. Region |
|
|
|
|
|
|
Central Valley |
NA |
NA |
|
$329,960 |
|
|
High Desert |
$180,570 |
$200,740 |
|
$306,310 |
|
|
Los Angeles |
$396,560 |
$422,160 |
|
$586,020 |
r |
|
Monterey Region |
$450,000 |
$444,740 |
|
$746,390 |
r |
|
Monterey County |
$359,900 |
$358,000 |
|
$719,000 |
r |
|
Santa Cruz County |
$610,000 |
$617,500 |
|
$761,000 |
r |
|
Northern California |
$341,400 |
$337,870 |
|
$392,360 |
|
|
Northern Wine Country |
$415,820 |
$442,270 |
|
$634,480 |
|
|
Orange County |
$560,900 |
$523,890 |
|
$723,860 |
|
|
Palm Springs/Lower Desert |
$277,970 |
$283,480 |
|
$393,750 |
|
|
Riverside/San Bernardino |
$261,980 |
$257,660 |
|
$388,290 |
r |
|
Sacramento |
$220,630 |
$233,230 |
|
$351,620 |
|
|
San Diego |
NA |
$446,610 |
|
$619,180 |
|
|
San Francisco Bay |
$676,740 |
$686,810 |
|
$843,390 |
r |
|
San Luis Obispo |
$487,500 |
$442,310 |
|
$625,000 |
|
|
Santa Barbara County |
$364,280 |
$400,000 |
|
$806,820 |
r |
|
Santa Barbara South Coast |
$1,035,000 |
$1,199,000 |
|
$1,370,000 |
|
|
North Santa Barbara County |
$290,620 |
$297,820 |
|
$422,000 |
|
|
Santa Clara |
$740,000 |
$769,650 |
|
$865,000 |
|
|
Ventura |
$480,430 |
$487,790 |
|
$692,730 |
|
na – not available
r – revised
Source: CALIFORNIA ASSOCIATION OF REALTORS®
Statewide, the 10 cities with the highest median home prices in California during June 2008 were: Manhattan Beach, $1,942,500; Los Altos, $1,595,000; Burlingame, $1,575,000; Newport Beach, $1,325,000; Mill Valley, $1,150,000; Los Gatos, $1,143,000; Cupertino, $1,072,500; San Carlos, $1,022,500; Danville, $965,000; Santa Barbara, $950,000.
Statewide, the 10 cities with the greatest median home price increases in June 2008 compared with the same period a year ago were: Manhattan Beach, 49.4 percent; Cupertino, 33.3 percent; San Luis Obispo, 11.4 percent; Los Gatos, 3 percent; San Carlos, 1.5 percent; Sunnyvale, 1.4 percent; Ridgecrest, 1.4 percent; Campbell, 1.3 percent; Temple City, 0.9 percent; San Rafael, 0.8 percent.
I’m not sure why some of those government reports have sounded so optimistic. I’m not a big fan of lowering standards just to make one feel better. That’s not an achievement. Just tell it like it is.
Thanks for your comment. The CAR is not actually a government entity but an Association for Real Estate Professionals. The data is just that- data. It states in the article that much of the increase is based on the sales mix including many distressed and reduced properties. The fact is it is a buyer’s market and there are buyers making terrific purchases today. I think we will continue to see robust sales where the deals are to be had.