C.A.R. reports California home sales rise in November; share of short sales increasing
LOS ANGELES (Dec. 22) - California home sales rose in November, but were down from the previous year, according to data from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). The statewide median price declined from both the previous month and previous year.
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 490,950 in November, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. November's sales were up 9.2 percent from October's revised pace of 449,480 but were down 8.6 percent from the revised 536,940 sales pace recorded in November 2009. The statewide sales figure represents what would be the total number of homes sold during 2010 if sales maintained the November pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
"We are encouraged by November's sales increase, but realize a more sustained recovery is being hampered by the distressed market," said C.A.R. President Beth L. Peerce. "While we are experiencing a greater share of short sales, these transactions are notoriously difficult to navigate with no guarantee of closure. A recent C.A.R. survey indicated that it takes many lenders 90 days or more simply to communicate whether a short sale has been accepted, causing tremendous frustration for buyers and sellers," she said. "Moreover, the survey found that more than two out of five short sale transactions never close. The housing market can't fully recover until lenders streamline and improve the short sales process, which would help expedite transactions," said Peerce.
The median price of an existing, single-family detached home sold in California fell below the $300,000 mark for the first time since February. The November 2010 median price was $296,820, down 2.4 percent from October's $304,220 median price and down 2.5 percent from the revised $304,550 median price recorded for the same period a year ago. It was the first year-over-year price decline in a year.
"Unsold inventory declined slightly in November, as the number of active listings fell from October, particularly for homes priced above $500,000," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "The decline in listings was reflective of seasonal factors and the foreclosure moratorium that took place in October," she said.
Click HERE for more information and other highlights of C.A.R.'s resale housing report for November 2010:
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