By Ray Perry

LAKE COUNTY, CA-Home sales increased 15.8 percent in July in Lake County compared with the same period a year ago, while the median price of an existing home fell 25.9 percent, the Lake County Multiple Listing Serves (MLS) reported.

"Sales improved significantly in July 2008," said California Association of Realtors (C.A.R.) President William E. Brown. "Deeply discounted, distressed sales continue to drive volume in many regions of the state.

"Year-to-year increases in the number of transactions ranged from a 6.7 percent increase in the San Francisco Bay Area to a 176.5 percent increase in the Riverside/San Bernardino region," he said. "In general, greater percentage gains occurred in lower-priced areas that had been most adversely affected by the market downturn since late 2005 and that are concurrently experiencing the biggest declines in prices."

Closed escrow sales of homes in Lake County totaled 88 in July according to information collected from the MLS. Countywide home sale activity increased 15.8 percent from the revised 76 sales pace recorded in July 2007. Sales in July 2008 increased 41.9 percent compared with the previous month.

The median price of a home in Lake County during July 2008 was $200,000, a 25.9 percent decrease from the revised $270,000 median for July 2007, the MLS reported. The July 2008 median price fell 8.9 percent compared with June's revised $219,450 median price.

"Once again, the 40.3 percent year-to-year decrease in the median price of a home was an all-time record, surpassing the previous record set in June with a 37.9 percent decrease," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Since the statewide median remained in the $585,000 - $595,000 range through August of last year, the market will continue to experience significant year-to-year adjustments through August even if the median price holds steady over the next few months," she said. "The statewide median was last in the $350,000 range in early 2003."

The Lake County market as well as the rest of the country is being driven by the large volume of foreclosures at this time. Sellers who are not in foreclosure have to compete in the existing market. This is not a problem if they have some equity in their home and are planning to buy right away, their next home may also be selling at a reduced price so it is relative to the situation. As volume of sales increase eventually so will the prices. We may see a slight drop in volume over the next few months as the foreclosure market gets snapped up but it appears that we are at or close to the bottom of the market. The savvy buyer should take advantage of the low prices while they can.

Highlights of Lake County's Housing Figures for July 2008:

• Lake County's Unsold Inventory Index for homes in July 2008 was 13.7 months, compared with 18.5 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

• Thirty-year fixed-mortgage interest rates averaged 6.47 percent during July 2008, compared with 6.70 percent in July 2007, according to Freddie Mac. Adjustable mortgage interest rates averaged 5.24 percent in July 2008, compared with 5.71 percent in July 2007.

• The median number of days it took to sell a single-family home was 148 days in July 2008, compared with 134 days (revised) for the same period a year ago.

To find what your home is worth, call Ray Perry. 

Ray Perry is a Realtor® with CPS Country Air Properties and can be reached at 707-277-8000 Ext 101 or email http://www.move2lakecounty.com/content/contact.html