California's Inventory Drops to 4.5 Months

The inventory of unsold existing single-family houses in California is now down to a manageable 4.5 months, according to the monthly roundup of sales activity by the state's Realtor association. In November a year ago, there was a 7.1 month's supply of housing awaiting buyers. "With sales bottoming out more than two years ago, and the median home price reaching its trough in February 2009, California remains ahead of the nation in market recovery," said Leslie Appleton-Young, chief economist at the California Association of Realtors. According to CAR's latest report, sales were up 4.7% in November from the same month a year ago to a seasonally adjusted rate of 536,720 units, while the median price increased 5.8%, from $287,880 in November 2008 to $304,520. On a month-by-month basis, closed sales in November were actually down 4.6% from October, but the November median price was up 2.4% from $297,500 the month before. According to CAR president Steve Goddard, rookies continue to drive the California market because of the $8,000 federal first-time buyer tax credit, while efforts by lenders and the government to assist owners at risk of foreclosure have cut into the number of properties on the market. CAR's price and sales data for detached homes are generated from a survey of more than 90 Realtor associations throughout the state. Data for condominiums are based on a survey of more than 60 state groups.