For release:
Monday, Sept. 25, 2006
C.A.R. reports sales decrease 30.1 percent in August, median price of a home in California at $576,360, up 1.6 percent from year ago
LOS ANGELES (Sept. 25) – Home sales decreased 30.1 percent in August in California compared with the same period a year ago, while the median price of an existing home increased 1.6 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
“We experienced the greatest year-to-year sales decline last month since August 1982, when sales fell 30.4 percent,” said C.A.R. President Vince Malta. “This is another indication that we’re in the initial stages of a long-anticipated adjustment in the market.
“Buyers today have a much greater selection of properties from which to choose, while some sellers are still clinging to price expectations that are no longer valid in today’s market,” he said.
Closed escrow sales of existing, single-family detached homes in California totaled 442,150 in August at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity decreased 30.1 percent from the 632,240 sales pace recorded in August 2005.
The statewide sales figure represents what the total number of homes sold during 2006 would be if sales maintained the August pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during August 2006 was $576,360, a 1.6 percent increase over the revised $567,320 median for August 2005, C.A.R. reported. The August 2006 median price increased 1.7 percent compared with July’s revised $566,940 median price.
“Although the median price in the state and in several regions hit an all-time record in August, we expect softer prices toward the end of the year,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “The median price typically peaks somewhere between June and August before declining toward the end of the year. Some areas of the state already have experienced year-to-year declines for more than two months. This is in stark contrast to the past several years when there were constant double-digit increases. The long-term trend remains to be seen.”
“Homes are taking longer to sell than a year ago, with just 29 percent of homes on the market for 30 days or less, compared with 51 percent a year ago,” she said. “The share of homes on the market for 90 days or longer has nearly quadrupled from 6 percent in August 2004 to 22 percent last month.
Highlights of C.A.R.’s resale housing figures for August 2006:
. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in August 2006 was 6.8 months, compared with 2.6 months (revised) 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 6.52 percent during August 2006, compared with 5.82 percent in August 2005, according to Freddie Mac. Adjustable mortgage interest rates averaged 5.64 percent in August 2006 compared with 4.55 percent in August 2005.
. The median number of days it took to sell a single-family home was 52 days in August 2006, compared with 29 days (revised) for the same period a year ago.
Regional MLS sales and price information is contained in the tables that accompany this press release. Regional sales data are not adjusted to account for seasonal factors that can influence home sales. The MLS median price and sales data for detached homes are generated from a survey of more than 90 associations of REALTORSīĸ throughout the state. MLS median price and sales data for condominiums are based on a survey of more than 60 associations. The median price for both detached homes and condominiums represents closed escrow sales.
In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 61.7 percent, or 246 out of 399 cities and communities showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. (The top 10 lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.)
Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices may be exaggerated due to compositional changes in housing demand. The DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. Online at http://www.car.org/index.php?id=MzY1NjQ=.
. Statewide, the 10 cities and communities with the highest median home prices in California during August 2006 were: Manhattan Beach, $1,850,000; Saratoga, $1,517,500; Palos Verdes Estates, $1,450,000; Los Altos, $1,438,750; Newport Beach, $1,310,000; Burlingame, $1,272,000; Calabasas, $1,150,500; Rancho Palos Verdes, $1,125,000; Mill Valley, $1,025,000; Santa Barbara, $1,017,000.
. Statewide, the 10 cities and communities with the greatest median home price increases in August 2006 compared with the same period a year ago were: Ladera Ranch, 46.9 percent; Manhattan Beach, 26.7 percent; California City, 23.2 percent; Hercules, 23.2 percent; Palm Springs, 21.9 percent; Carson, 21.8 percent; Compton, 19.8 percent; South Gate, 19.4 percent; Barstow, 19.3 percent; Inglewood, 18.1 percent; San Clemente, 17.3 percent.
Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 195,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
August 2006 Regional Sales and Price Activity*
Regional and Condo Sales Data Not Seasonally Adjusted
| Median Price | Percent Change in Price from Prior Month | Percent Change in Price from Prior Year | Percent Change in Sales from Prior Month | Percent Change in Sales from Prior Year |
| Aug-06 | Jul-06 | Aug-05 | Jul-06 | Aug-05 |
Calif. (sf) | $576,360 | 1.7% | 1.6% | -2.6% | -30.1% |
Calif. (condo) | $433,720 | 2.5% | 0.1% | 8.3% | -31.6% |
C.A.R. REGION |
|
|
|
|
|
Central Valley | $349,890 | -1.1% | -3.8% | 12.7% | -39.0% |
High Desert | $332,900 | -0.1% | 8.9% | 8.4% | -24.5% |
Los Angeles | $589,740 | 1.5% | 4.5% | 16.5% | -23.8% |
Monterey Region | $723,260 | -0.6% | -0.6% | 20.2% | -29.3% |
Monterey County | $675,000 | 2.4% | -2.2% | 15.4% | -36.7% |
Santa Cruz County | $765,000 | -1.3% | -2.3% | 25.9% | -18.9% |
Northern California | $396,390 | -7.5% | -10.0% | 12.0% | -30.7% |
Northern Wine Country | $609,730 | -3.2% | -4.8% | 17.4% | -23.6% |
Orange County | $698,080 | -1.8% | -2.5% | 5.2% | -32.4% |
Palm Sprs/Lwr Desert | $355,330 | -0.7% | -4.2% | -11.0% | -35.6% |
Riverside/S. Bernardino | $407,400 | -0.4% | 5.7% | 20.6% | -31.4% |
Sacramento | $378,180 | -0.1% | -4.1% | 8.4% | -42.2% |
San Diego | $598,580 | -2.2% | -3.0% | 8.5% | -25.8% |
San Francisco Bay | $737,110 | -2.3% | 0.9% | 11.9% | -23.1% |
San Luis Obispo | $602,850 | 4.9% | 6.4% | 19.1% | -33.9% |
Santa Barbara County | $835,230 | 31.1% | 1.9% | 26.5% | -19.3% |
Santa Barbara S. Coast | $1,190,000 | 13.3% | -9.2% | 59.4% | -11.3% |
No. S. Barbara County | $453,490 | -0.4% | -2.0% | -2.3% | -23.9% |
Santa Clara | $770,000 | -4.3% | 1.3% | 11.0% | -23.1% |
Ventura | $710,910 | 0.8% | 3.3% | 0.8% | -41.5% |
na – not available
*Based on closed escrow sales of single family, detached homes only (no condos). Reported month to month changes in sales activity may overstate actual changes because of the small size of individual regional samples. Movements in sales prices should not be interpreted as measuring changes in the cost of a standard home. Prices are influenced by changes in cost and changes in the characteristics and size of homes actually sold.
sf = single family, detached home
Source: CALIFORNIA ASSOCIATION OF REALTORS®
Median Prices By Region - Current Month vs. Year Ago
| Aug-06 | Jul-06 |
| Aug-05 |
|
Calif. (sf) | $576,360 | $566,940 | r | $567,320 | r |
Calif. (condo) | $433,720 | $423,220 | r | $433,360 | r |
C.A.R. Region |
|
|
|
|
|
Central Valley | $349,890 | $353,890 |
| $363,680 |
|
High Desert | $332,900 | $333,330 |
| $305,700 |
|
Los Angeles | $589,740 | $581,140 |
| $564,340 |
|
Monterey Region | $723,260 | $727,740 |
| $727,500 |
|
Monterey County | $675,000 | $659,000 |
| $690,000 |
|
Santa Cruz County | $765,000 | $775,000 |
| $783,000 |
|
Northern California | $396,390 | $428,570 |
| $440,420 |
|
Northern Wine Country | $609,730 | $629,790 |
| $640,700 |
|
Orange County | $698,080 | $710,920 |
| $716,300 |
|
Palm Sprs/Lwr Desert | $355,330 | $357,720 |
| $371,020 |
|
Riverside/S. Bernardino | $407,400 | $409,090 |
| $385,260 | r |
Sacramento | $378,180 | $378,590 |
| $394,450 |
|
San Diego | $598,580 | $612,000 |
| $616,870 |
|
San Francisco Bay | $737,110 | $754,630 |
| $730,360 |
|
San Luis Obispo | $602,850 | $574,560 |
| $566,510 |
|
Santa Barbara County | $835,230 | $636,900 |
| $819,850 |
|
S. Barbara South Coast | $1,190,000 | $1,050,000 |
| $1,310,000 | r |
No. S. Barbara County | $453,490 | $455,100 |
| $462,880 |
|
Santa Clara | $770,000 | $805,000 |
| $760,000 |
|
Ventura | $710,910 | $705,260 | r | $688,150 | r |
na - not available
r - revised
Source: CALIFORNIA ASSOCIATION OF REALTORS®
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