The California housing market is transitioning from the conclusion of housing tax credits as is evident by stronger home sales in the higher-price range and weaker sales in entry-level homes and condominiums, which are typically favored by first-time homebuyers, according to the president and chief economist of the California Association of Realtors.
For the month of August, California home sales edged up 1.8% from July, but were down 14.9% from August 2009, CAR reported. The statewide median home price also increased 1.2% from July and was up 8.6% from a year ago.
“As a result of the strength in the upper-end market and inventory levels that are higher but still lean by average, we’re seeing home prices holding steady,” said Leslie Appleton-Young.
Closed escrow sales of existing, single-family detached homes in the state totaled 447,530 at a seasonally adjusted annualized rate, according to information collected by CAR from more than 90 local Realtor associations statewide.
Statewide home resale activity decreased 14.9% from the revised 526,110 sales pace recorded in August 2009. Sales in August 2010 increased 1.8% compared with July.
The statewide median home price posted its 10th consecutive year-over-year gain in August. The median price of an existing, single-family detached home was $318,660, an 8.6% increase from the revised $293,400 median price recorded a year ago, CAR reported. The August 2010 median price was up 1.2% compared with July’s $314,850 median price.
CAR’s Unsold Inventory Index for existing, single-family detached homes in August rose to 6.1 months compared with 4.6 months in August 2009.
Thirty-year fixed mortgage interest rates averaged 4.43% during August 2010 compared with 5.19% in a year ago, according to Freddie Mac, while adjustable mortgage interest rates averaged 3.53% in August compared with 4.72% in August 2009.
The median number of days it took to sell a single-family home was 47.1 days in August 2010 compared with 34.8 days for the same period a year ago.
Statewide, the 10 cities with the highest median home prices in California during August 2010 were Los Altos at $1,795,000, Saratoga at $1,420,000, Coronado at $1,331,250, Manhattan Beach at $1,275,000, Palo Alto at $1,216,250, Newport Beach at $1,187,500, Calabasas at $1,030,000, Los Gatos at $962,500, Cupertino at $940,000 and La Canada Flintridge, $935,000.
