Home sales increased one percent in October 2009 in California compared with the same period a year ago. But the median price of existing homes declined 3.2 percent, according to the California Association of REALTORS. “Home sales historically trail off during the fall and winter months as we move to the off-peak season for the housing market,” said C.A.R. President Steve Goddard. “However, with affordable home prices, mortgage rates hovering around 5 percent, and the extension and expansion of the federal tax credit, we expect first-time and move-up home buyers to drive home sales through the end of this year and into early 2010.” Closed escrow sales of existing, single-family detached homes in California totaled 562,400 in October at a seasonally adjusted annualized rate. Statewide home resale activity increased 1 percent from the revised 557,050 sales pace recorded in October 2008. Sales in October 2009 increased 5.9 percent compared with the previous month. The median price of an existing, single-family detached home in California during October 2009 was $297,500, a 3.2 percent decrease from the revised $307,210 median for October 2008, C.A.R. The October 2009 median price rose 0.3 percent compared with September’s $296,610 median price. “California’s median price rose for the eighth consecutive month in October and sales continued to show strength, signs that California has hit and passed the bottom of this real estate cycle,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “The number of distressed sales as a share of total sales has shown considerable improvement since the beginning of the year, as a result of loan modifications and other efforts to prevent troubled mortgages from going into foreclosure. This has led to a decline in inventory levels since the start of the year that is more consistent with the price gains we have seen in recent months.” For the first-time since July 2007, sales of homes priced $1 million or more rose in year-to-year comparisons, said Appleton-Young, adding while this is a welcome sign, the high end continues to be constrained by the lack of available financing in this sector.
