California Home Sales Up 43.4% – Home Prices Down 40.3%
Last week the California Association of Realtors reported California home sales increased 43.4 percent in July compared to the same period a year ago, while the median price of an existing home fell 40.3 percent.
"Sales improved significantly in July 2008 and remained above the 400,000 level for the third consecutive month," said C.A.R. President William E. Brown. "Deeply-discounted, distressed sales continue to drive volume in many regions of the state. July also was the first full month during which the effects of higher $729,000, conforming loan limits likely had an impact on closed sales."
The median price of an existing, single-family detached home in California during July 2008 was $350,760, a 40.3 percent decrease from the revised $587,560 median for July 2007. The July 2008 median price fell 4.5 percent compared with June's revised $367,130 median price.Home sales increased 43.4 percent in July in California compared with the same period a year ago, while the median price of an existing home fell 40.3 percent.
A few of our prior posts on California home sales & home values were:
Commercial Real Estate Prices Fall 11.8% from Peak
Southern California Highest Sales … Prices Still Falling
More homeowners than ever are selling at a loss!
Another Look at the June Rise in Pending Home Sales
San Diego California real estate
We’re only seeing the last of the 1 and first of the 3 year ARMs getting their bumps now. Remember that even though housing was slowing refinancings were very strong. Not only that but most people that played that game pulled equity out too which means they essentially lump themselves in with the last of the buyers. Even if you say the top was at the end of ’06, and it wasn’t, we still need to get through all of ’09 just to clear out the last of the 3 year ARMs. And the only way those people don’t get hit hard is if property values not just stabilize but actually rise a bit as lending standards are tighter and they will have to come up with some equity.
Attorney in San Diego
Homes will always be unaffordable to the average person in high priced CA as long as government subsidize home owners in the form of mortgate tax deductions, and Fannie Mae bailouts. Remove the interest tax deduction and watch the prices correct 50%. This place a bottom on home prices and increase home ownership than further government meddling. The issue is affordability, not unemployment. Prices are still too high due to government tax policies and bad lending practices.
Eye Doctor in San Diego