CA December Median Price Sees Biggest Gain in Three Years

The median price of existing single-family, detached houses sold in California in December recorded its largest year-over-year gain in three years, the state's Realtors reported. The median price hit $306,820 for the month, an 8.4% increase from the revised $283,060 median for December 2008, the group said. But the December figure was up only a modest 0.8% compared with November's $304,520 median price. "Home sales were unusually strong in December and were more consistent with peak season trends," said Leslie Appleton-Young, chief economist at the California Association of Realtors. "Historically, the median price declines November through February and then rises in March. However, lean inventory, historically low interest rates, and incentives for homebuyers have resulted in California's housing market experiencing non-seasonal variations." For the month, existing home sales were up 4%, reaching a seasonally adjusted annual rate of 558,320 units. In addition, the state's unsold inventory fell to 3.8 months compared to 5.6 months in December '08.