CA. in 7th month of home price gains

Fron OC Register
by Jonathan Lansner & Jeff Collins

The median price of a California home reached its highest level in more than 4 years in September, the California Association of Realtors reports. But while prices rose, a continued shortage of  homes on the market lowered sales.

 “Low inventory –  especially in distressed areas —  is dampening sales activity,” C.A.R. President LeFrancis Arnold said.  “In many of these areas, there is a one- to two-month supply of REO (banked owned) homes on the market.”

The report shows statewide:

  • The median price for an existing, single-family detached home was $345,000  in September, up 19.5  percent from a revised $288,700 recorded in September 2011, marking the seventh consecutive month of both month-over-month and year-over-year  increases.
  • September’s median price was the highest since August 2008, when it was $352,730.  This was the largest year-over-year increase since May 2010.
  • Sales were down 1.2 percent from last September and 5.2 percent from August.
  • California’s housing inventory went up slightly last month, to 3.7 months, up from 3.2 months in August but down from 5.3 months in September a year ago. The index indicates the number of months needed to sell the supply of homes on the market at the current rate of sales.

From C.A.R. Vice President and Chief Economist Leslie Appleton-Young:

“For the state, at 3.7 months of supply, unsold inventory is still less than half what it would be in a normal market. As a result of the constrained supply at the moderate and lower end of the market, sales of homes priced under $200,000 dropped nearly 28 percent, and homes priced $200,000-$300,000 fell more than 15 percent in September. 

“By contrast, in the upper price range, where inventory isn’t as much of an issue, sales of homes priced $400,000-$500,000 rose more than 14 percent, and those priced above $500,000 increased more than 15 percent.”

In Orange County, the median price in September was at $561,830, up 12.4% from $500,000 last September. Sales were up 1.8% year over year but down 18.8% from August.

DataQuick, which measures all home sales — not just existing, single family homes — reported last week that the median price for an Orange County home was $450,000 , up 5.9% from September 2011. County officials recorded 2,677 homes sold, up 6.7 percent from September a year ago. September was the 5th consecutive month that Orange County saw both price and sales increases, DataQuick reported. 


A little context …


Speak Your Mind