California home sales increased 5% between December and January but the median transaction price fell by almost 9%, according to the California Association of Realtors.
This marks three months of consecutive increases of sales for the Golden State, the largest housing market in the nation.
But CAR said the 'Unsold Inventory Index' increased to 6.7 months in January from five months in December.
The annualized, seasonally adjusted sales pace was 546,420 units for January, compared to 520,080 in December.
The median sales price for the month was $278,900, the lowest reading since June 2009's $274,640.
Areas showing price increases include San Bernardino (up 2.4% on a month-to-month basis), and Orange County where values rose 1.7%. Cities that lost value include Santa Barbara (-19.4%) San Mateo (-17.8%), and Santa Cruz (-16%).
CAR vice president and chief economist Leslie Appleton-Young noted that, "Although prices typically fall seasonally in January and February of each year, the decline in the median price can primarily be attributed to the aftereffects of last fall's foreclosure moratoria. More distressed properties are coming on to the market, which led to an uptick in sales of distressed properties during January. We expect this trend to continue as lenders expedite the disposition of these properties."
