August sales and price report

August sales and price report

For release:
Friday, Sept. 25, 2009

C.A.R. reports August home sales increased 9 percent; median home price declined 16.9 percent

Multimedia:
· Click here to view Unsold Inventory by price point
· Click here to view a data table comparing peak prices and current prices in areas throughout the state

Quick Facts:
· Existing, single-family home sales increased 9 percent in August to a seasonally adjusted rate of 526,970 on an annualized basis.
· The statewide median price of an existing single-family home increased 2.6 percent in August to
$292,960, compared with July 2009.
· C.A.R.’s Unsold Inventory Index fell to 4.3 months in August, compared with 7 months in August 2008.

LOS ANGELES (Sept. 25) – Home sales increased 9 percent in August in California compared with the same period a year ago, while the median price of an existing home declined 16.9 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

“First-time buyers continue to be the driving force in home sales throughout the state,” said C.A.R. President James Liptak. “The federal tax credit, which has helped more than 1.4 million people become first-time homeowners nationally, is set to expire Nov. 30. The tax credit is a proven economic stimulus that clearly is working, and should be extended through 2010 and expanded to include all home buyers,” Liptak said.

Closed escrow sales of existing, single-family detached homes in California totaled 526,970 in August 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 increased 9 percent from the revised 483,400 sales pace recorded in August 2008. Sales in August 2009 decreased 5.1 percent compared with the previous month.

The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the August 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 August 2009 was $292,960, a 16.9 percent decrease from the revised $352,730 median for August 2008, C.A.R. reported. The August 2009 median price rose 2.6 percent compared with July’s $285,480 median price.

“The statewide median price rose for the sixth consecutive month in August,” said C.A.R. Vice President and Chief Economist Leslie-Appleton-Young. “Recent price gains are consistent with the low inventory levels of the past few months. Levels of distressed properties remain high, but have declined compared with earlier in the year, and are one reason why inventory levels are running below the state’s long-run average of 7.2 months.

“Sales have exceeded 500,000 homes for 12 consecutive months, and now are 38 percent higher on a year-to-date basis compared with 2008,” said Appleton-Young. “Sales continue to be boosted by the large number of distressed properties on the market, along with favorable interest rates.”

Highlights of C.A.R.’s resale housing figures for August 2009:

. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in August 2009 was 4.3 months, compared with 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 5.19 percent during August 2009, compared with 6.48 percent in August 2008, according to Freddie Mac. Adjustable-mortgage interest rates averaged 4.72 percent in August 2009, compared with 5.26 percent in August 2008.

. The median number of days it took to sell a single-family home was 35.2 days in August 2009, compared with 47.6 days (revised) for the same period a year ago.

Regional MLS sales and price information are 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, 27 of the 388 cities and communities reporting 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 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 for August 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/economics/historicalprices/2009medianprices/aug2009medianprices

. Statewide, the 10 cities with the highest median home prices in California during August 2009 were: Saratoga, $1,337,000; Palos Verdes, $1,170,000; Newport Beach, $1,040,000; Los Gatos, $900,000; Cupertino, $870,000; Danville, $825,000; Santa Monica, $810,000; Rancho Palos Verdes, $765,000; Arcadia, $750,000; and Mountain View, $732,500.

. Statewide, the cities with the greatest median home price increases in August 2009 compared with the same period a year ago were: San Juan Capistrano, 28.8 percent; Laguna Hills, 17.6 percent; Placentia, 10.9 percent; San Rafael, 10.1 percent; Fullerton, 7.2 percent; Benicia, 5.6 percent; Arcadia, 5 percent; Alhambra, 3.5 percent; Costa Mesa, 3.1 percent; and Walnut 2.9 percent.

Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 163,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

August 2009 Regional Sales and Price Activity*
Regional and Condo Sales Data Not Seasonally Adjusted

August-09	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
	Aug-09	Jul-09		Aug-08	Jul-09	Aug-08
Statewide
Calif. (sf)	$292,960	2.6%		-16.9%	-5.1%	9.0%
Calif. (condo)	$260,370	0.2%		-14.4%	-8.2%	9.0%

C.A.R. Region

High Desert	$111,770	1.0%		-33.9%	-13.2%	40.4%
Los Angeles	$339,980	0.2%		-13.9%	-10.6%	6.7%
Monterey Region	$298,940	5.4%		-19.3%	-8.7%	10.0%
Monterey County	$235,000	2.2%		-22.2%	-6.4%	12.6%
Santa Cruz County	$500,000	-6.5%		-14.1%	-13.4%	4.5%
Northern California	$255,600	-5.6%		-15.2%	-10.9%	-9.6%
Northern Wine Country	$347,920	-3.5%		-10.3%	-13.0%	-3.6%
Orange County	$499,440	-0.2%		-2.3%	-8.8%	5.9%
Palm Springs/Lower Desert	$169,080	3.7%		-23.8%	-19.8%	21.4%
Riverside/San Bernardino	$166,600	0.7%		-26.1%	-10.9%	-0.1%
Sacramento	$192,050	4.5%		-13.1%	-8.9%	-10.0%
San Diego	$375,710	0.8%		-3.3%	-13.4%	0.1%
San Francisco Bay	$531,580	-2.6%		-14.2%	-15.2%	7.6%
San Luis Obispo	$382,560	-3.0%		-7.8%	-9.0%	9.7%
Santa Barbara County	$376,090	0.0%		-10.0%	-15.4%	-5.7%
Santa Barbara South Coast	$828,750	-6.1%		-17.1%	-17.1%	-6.8%
North Santa Barbara County	$244,050	0.2%		-8.5%	-14.9%	-4.9%
Santa Clara	$555,000	-5.5%		-14.6%	-20.7%	9.9%
Ventura	$466,200	2.1%		-2.6%	-6.9%	6.1%

* Santa Barbara County and Monterey County median prices decreased significantly from August 2008 due mainly to the high proportion of total sales from lower-priced properties in the regions.

na - not available

* Based on closed escrow sales of single‑family, detached homes only (no condos). 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

	Aug-09	Jul-09		Aug-08
Statewide
Calif. (sf)	$292,960	$285,480		$352,730	r
Calif. (condo)	$260,370	$259,770		$304,220	r

C.A.R. Region

High Desert	$111,770	$110,650		$169,200
Los Angeles	$339,980	$339,430		$394,870
Monterey Region	$298,940	$283,650		$370,410
Monterey County	$235,000	$230,000		$302,000
Santa Cruz County	$500,000	$535,000		$582,000
Northern California	$255,600	$270,730		$301,450	r
Northern Wine Country	$347,920	$360,390		$387,740
Orange County	$499,440	$500,210		$511,270
Palm Springs/Lower Desert	$169,080	$163,080		$221,940
Riverside/San Bernardino	$166,600	$165,460		$225,390
Sacramento	$192,050	$183,840		$220,890
San Diego	$375,710	$372,640		$388,710	r
San Francisco Bay	$531,580	$545,810		$619,300
San Luis Obispo	$382,560	$394,440		$415,000
Santa Barbara County	$376,090	$376,090		$417,860	r
Santa Barbara South Coast	$828,750	$882,500	r	$1,000,000
North Santa Barbara County	$244,050	$243,480		$266,670
Santa Clara	$555,000	$587,000		$650,000
Ventura	$466,200	$456,440		$478,410

na - not available

r - revised

Source: CALIFORNIA ASSOCIATION OF REALTORS^®

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