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Thursday, March 23, 2006

LOS ANGELES (March 23) – The median price of an existing home in California in February increased 13.7 percent and sales decreased 15.5 percent compared with the same period a year ago, the California Association of REALTORS® (C.A.R.) reported today.

“Sales posted a slight increase last month compared with January 2006, as the downward drift in interest rates late last year caused an uptick in market activity,” said C.A.R. President Vince Malta. “As expected, year-over-year sales continued to decline from the robust levels of a year ago.”

Closed escrow sales of existing, single-family detached homes in California totaled 513,745 in February 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 decreased 15.5 percent from the 608,160 sales pace recorded in February 2005.

The statewide sales figure represents what the total number of homes sold during 2006 would be if sales maintained the February 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 February 2006 was $535,470, a 13.7 percent increase over the $470,920 median for February 2005, C.A.R. reported. The February 2006 median price decreased 2.9 percent compared with January’s $551,300 median price.

“Unsold inventory rose again in February to a 6.7 month supply, one of the highest inventory levels in several years,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “We expect the pace of price appreciation to slow from the 13 to 17 percent range of 2005 to 10 percent this year as rising inventory levels mitigate some of the upward pressure on home prices. The higher-priced coastal areas will see price gains in the mid-single digits while the inland areas will see increases in excess of 10 percent.”

Highlights of C.A.R.’s resale housing figures for February 2006:

. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in February 2006 was 6.7 months, compared with 3.2 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 6.25 percent during February 2006, compared with 5.63 percent in February 2005, according to Freddie Mac. Adjustable mortgage interest rates averaged 5.34 percent in February 2006 compared with 4.16 percent in February 2005.

. The median number of days it took to sell a single-family home was 52 days in February 2006, compared with 40 days (revised) for the same period a year ago.

Regional MLS sales and price information is 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, 92.1 percent or 337 of 366 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 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/index.php?id=MzYwMDQ.

. Statewide, the 10 cities and communities with the highest median home prices in California during February 2006 were: Newport Beach, $1,287,500; Los Gatos, $1,116,500; Santa Barbara, $1,050,000; Cupertino, $923,500; San Clemente, $920,000; Dana Point, $880,000; Santa Monica, $879,000; San Juan Capistrano, $870,000; Danville, $862,500; Yorba Linda, $795,000.

. Statewide, the 10 cities and communities with the greatest median home price increases in February 2006 compared with the same period a year ago were: Ridgecrest, 70.2 percent; Banning, 63 percent; San Juan Capistrano, 58.2 percent; Inglewood, 52.3 percent; Barstow, 51.8 percent; Twentynine Palms, 50.6 percent; Atwater, 48.4 percent; Santa Monica, 46.5 percent; Beaumont, 45.3 percent; Porterville, 44.8 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 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

February 2006 Regional Sales and Price Activity*
Regional and Condo Sales Data Not Seasonally Adjusted

*Based on closed escrow sales of single family, detached homes only (no condos).  Reported month to month changes in sales activity may 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.

na – not available
sf = single family, detached home
Source:  California Association of REALTORS® 

Median Prices By Region - Current Month vs. Year Ago