SALES UP, PRICES DOWN IN CALIFORNIA
INDUSTRY NEWS, SHASTA COUNTY
July 31st, 2008
The California Association of Realtors reported today that home sales increased 17.5% in June compared with the same period a year ago. The median home price fell 37.7% during the same time period. Another indicator that the market is improving is sales volume: for the second month in a row the number of homes sold has surpassed the 400,000 level. This represents an increase of 18% from a year ago. This follows a 30-month string of year-to-year percentage decreases that began in October of 2005. Obviously this news is good for buyers but heart-wrenching for sellers.
President William Brown of the California Association of Realtors, said sales were driven in part by deeply discounted distress sales in many parts of the state. Lower prices and favorable interest rates have increased affordability substantially allowing many buyers to buy a home for the first time. The median price of an existing single-family home in California during June was $368,250, down 37.7% from $591,280 in June 2007. Northern California fared better than the state with a June 2008 median price of $341,400 compared to $392,360 in June 2007, a 13% decline. Shasta County fell between the two with a median price of $268,630 today compared to $355,571 in June of 2007, a 19% decline.
The steep decline in the median price over the past year is largely due to a dramatic shift in the sales mix since the implosion of the subprime lending debacle. Distressed sales are making a larger impact compared to a year ago and the price range that is selling has shifted significantly. Last year, the under $500,000 price range accounted for 40% of sales,the middle segment made up 45% , and the over $1 million segment represented 15% of the market. As of June 2008, the shares had shifted to 67%, 24% and 9% respectively.
Interest rates have also dropped from 6.66% in June 2007 to 6.32% in June 2008. The average days on market has not changed significantly-49.1 days in June 2008 compared to 51.5 days last June.
Just for yucks, the highest median price in California during June 2008 was Manhattan Beach at $1,942,500, up 49.4% from a year ago! The High Desert area of southeastern California was the most affordable at $180,750, down from $306,310 or a loss of 41%.
California truly is a state of contrasts!
For additional information on this article or any real estate matter contact Brad Garbutt by blog, email or phone:
530-224-6767
530-941-7492
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