NOV 16, 2012 12:46pm ET

California Home Sales Highest Since May

NOV 16, 2012 12:46pm ET
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California home sales were at their highest level since May for October and that is being seen all across the state, the California Association of Realtors reported.

The organization’s 2013 president Don Faught explained, “Sales were particularly robust in the costal markets, but they also soared in many non-metropolitan areas, as confidence toward the housing market continued to improve. Most counties in the Northern California region, for example, posted double-digit year-over-year sales gains in October.”

The organization previously reported that nearly 6 in 10 home sales this year had multiple offers.

Sales were at a seasonally adjusted annualized rate of 544,380 units, up 12.5% from a revised 484,050 in September and up 10.2% from a revised 493,790 in October 2011.

The median price for a single-family home was $341,370, down 1.1% from September but up 23% over October 2011, marking the eighth consecutive month of annual price increases and the fourth consecutive month of double-digit annual gains. The year-to-year increase was the largest since May 2010.

“Although the statewide median price was off its recent high reached last month, it is not unusual to see an October dip in price as we transition from the peak season to the low season,” said CAR chief economist Leslie Appleton-Young. “The year-over-year price gain, on the other hand, has been accelerating since early 2012, as sales of higher-priced homes continue to improve. With the supply shortage, especially of lower-priced homes, expected to remain an issue in the near future, we will likely see solid year-over-year price gains through the first quarter of next year, as sales of higher-priced homes grow.”