C.A.R. REPORTS SALES INCREASED 56.7 PERCENT; MEDIAN HOME PRICE FELL 40.5 PERCENT IN AUGUST
Home sales increased 56.7 percent in August in California compared with the same period a year ago, while the median price of an existing home fell 40.5 percent, C.A.R. reported Sept. 25.
"Sales are now 85 percent above the monthly trough for this cycle, which occurred in October 2007, and for the first time this year are ahead of 2007 in year-to-date terms," said C.A.R. President William E. Brown. "While this is encouraging news, we don't expect to see a housing market recovery until prices stabilize and the number of distressed properties on the market declines. Sales gains continue to be driven by the large share of deeply-discounted distressed sales in many parts of the state."
The median price of an existing, single-family detached home in California during August 2008 was $350,140, a 40.5 percent decrease from the revised $588,670 median for August 2007, C.A.R. reported. The August 2008 median price fell 0.2 percent compared with July's revised $350,890 median price.
"Although the month-to-month decline in the median price was the smallest in a year, it's still premature to say that the median price has begun to stabilize," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "While sales appear to have turned the corner, the median will experience additional downward pressure as we move into the off-peak season in the coming months, and will continue to face pressure from distressed sales."