C.A.R. reports sales increased 96.7 percent; median home price fell 40.9 percent in September

LOS ANGELES (Oct. 24) – Home sales increased 96.7 percent in September in California compared with the same period a year ago, while the median price of an existing home fell 40.9 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today. 

“Statewide sales in September edged past the 500,000 threshold for the first time in more than two years, rising 2.3 percent compared with August and 96.7 percent compared with a year ago,” said C.A.R. President William E. Brown. “This dramatic increase in sales owes as much to market weakness a year ago in the early stages of the credit crunch, as it does to the growth of sales in September this year. Similar increases occurred in the early 1980s when the market was climbing out of a comparatively steep downturn in sales. 

“We expect the market to register significant year-to-year percentage gains in the coming months as current sales are compared against extremely low numbers that prevailed during the fourth quarter of last year,” he said.

Closed escrow sales of existing, single-family detached homes in California totaled 502,190 in September 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 96.7 percent from the revised 255,340 sales pace recorded in September 2007. Sales in September 2008 increased 2.3 percent compared with the previous month.

The statewide sales figure represents what the total number of homes sold during 2008 would be if sales maintained the September 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 September 2008 was $316,480, a 40.9 percent decrease from the revised $535,760 median for September 2007, C.A.R. reported. The September 2008 median price fell 9.6 percent compared with August’s $350,140 median price. 

“There is still no clear sign that the statewide median price has begun to stabilize, and recent events in the economy and financial system undoubtedly contributed to the steep decline in September, both directly and through weakened consumer confidence,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “However, individual markets may be faring better than the statewide median at this time. 

“The median also will continue to face downward pressure from the large share of distressed sales and a dramatic change in the sales mix,” she said. “A year ago, the under $500,000 price range accounted for 46 percent of sales but shifted to 76 percent as of September.” 

Highlights of C.A.R.’s resale housing figures for September 2008:

. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in September 2008 was 6.5 months, compared with 16 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 6.04 percent during September 2008, compared with 6.38 percent in September 2007, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.14 percent in September 2008, compared with 5.66 percent in September 2007.

. The median number of days it took to sell a single-family home was 46.1 days in September 2008, compared with 56.7 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, 2.6 percent, or 10 out of 382 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 for September 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/2008medianprices/sep2008medianprices/ 

. Statewide, the 10 cities with the highest median home prices in California during September 2008 were: Los Gatos, $1,200,000; Newport Beach, $1,172,000; Cupertino, $915,000; Danville, $905,000; Santa Barbara, $900,000; Santa Monica, $863,000; Redwood City, $805,000; San Ramon, $750,000; Pleasanton, $737,000; and Redondo Beach, $720,000.

. Statewide, the cities with the greatest median home price increases in September 2008 compared with the same period a year ago were: Culver City, 15.5 percent; Truckee, 7.6 percent; South Lake Tahoe, 6.5 percent; Redwood City, 6.3 percent; Berkeley 5.4 percent; Santa Monica, 1.6 percent; Pleasanton, 1.4 percent; Fountain Valley, 0.4 percent; and Walnut Creek 0.3 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 nearly 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

September 2008 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 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