C.A.R. Reports Sales Increased 96.7 Percent; Median Home Price Fell 40.9 Percent in September
LOS ANGELES--(BUSINESS WIRE)--Home sales increased 96.7 percent in September in California compared with the same period a year ago, while the median price of an existing home fell 40.9 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
“There is still no clear sign that the statewide median price has begun to stabilize, and recent events in the economy and financial system undoubtedly contributed to the steep decline in September, both directly and through weakened consumer confidence”
“Statewide sales in September edged past the 500,000 threshold for the first time in more than two years, rising 2.3 percent compared with August and 96.7 percent compared with a year ago,” said C.A.R. President William E. Brown. “This dramatic increase in sales owes as much to market weakness a year ago in the early stages of the credit crunch, as it does to the growth of sales in September this year. Similar increases occurred in the early 1980s when the market was climbing out of a comparatively steep downturn in sales.
“We expect the market to register significant year-to-year percentage gains in the coming months as current sales are compared against extremely low numbers that prevailed during the fourth quarter of last year,” he said.
Closed escrow sales of existing, single-family detached homes in California totaled 502,190 in September 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 increased 96.7 percent from the revised 255,340 sales pace recorded in September 2007. Sales in September 2008 increased 2.3 percent compared with the previous month.
The statewide sales figure represents what the total number of homes sold during 2008 would be if sales maintained the September 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 September 2008 was $316,480, a 40.9 percent decrease from the revised $535,760 median for September 2007, C.A.R. reported. The September 2008 median price fell 9.6 percent compared with August’s $350,140 median price.
“There is still no clear sign that the statewide median price has begun to stabilize, and recent events in the economy and financial system undoubtedly contributed to the steep decline in September, both directly and through weakened consumer confidence,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “However, individual markets may be faring better than the statewide median at this time.
“The median also will continue to face downward pressure from the large share of distressed sales and a dramatic change in the sales mix,” she said. “A year ago, the under $500,000 price range accounted for 46 percent of sales but shifted to 76 percent as of September.”
Highlights of C.A.R.’s resale housing figures for September 2008:
Regional MLS sales and price information are 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 REALTORS® 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, 2.6 percent, or 10 out of 382 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 for September 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/economics/historicalprices/2008medianprices/sep2008 medianprices/ (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)
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 nearly 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
September 2008 Regional Sales and Price Activity(a)
Regional and Condo Sales Data Not Seasonally Adjusted
|Santa Cruz County||$||475,000||-18.4||%||-32.4||%||-6.5||%||61.1||%|
|Northern Wine Country||$||369,180||-4.8||%||-33.1||%||3.6||%||82.6||%|
|Palm Springs/Lower Desert||$||199,810||-10.0||%||-42.3||%||17.4||%||135.3||%|
|San Francisco Bay||$||554,730||-10.4||%||-29.2||%||-3.0||%||60.3||%|
|San Luis Obispo||$||375,000||-9.6||%||-27.8||%||-1.2||%||23.5||%|
|Santa Barbara County||$||355,560||-11.1||%||-50.2||%||8.2||%||76.9||%|
|Santa Barbara South Coast||$||935,000||-6.5||%||-40.2||%||-2.7||%||42.0||%|
|North Santa Barbara County||$||255,440||-4.2||%||-30.6||%||10.8||%||109.3||%|
|Note: Santa Barbara County and Monterey County median prices decreased significantly from Sep 07 due mainly to high proportion of total sales from lower properties in the regions.|
|na - not available|
|(a) Based on closed escrow sales of single-family, detached homes only|
|(no condos). Reported month-to-month changes in sales activity in|
|June overstate actual changes because of the small size of individual|
|regional samples. Movements in sales prices should not be interpreted|
|as measuring changes in the cost of a standard home. Prices are|
|influenced by changes in cost and changes in the characteristics and|
|size of homes actually sold.|
|sf = single-family, detached home|
Source: CALIFORNIA ASSOCIATION OF REALTORS®
Median Prices By Region – Current Month vs. Year Ago
|Santa Cruz County||$||475,000||$||582,000||$||702,500||r|
|Northern Wine Country||$||369,180||$||387,740||$||551,680|
|Palm Springs/Lower Desert||$||199,810||$||221,940||$||346,080|
|San Francisco Bay||$||554,730||$||619,300||$||783,370||r|
|San Luis Obispo||$||375,000||$||415,000||$||519,740|
|Santa Barbara County||$||355,560||$||400,000||$||714,280||r|
|Santa Barbara South Coast||$||935,000||$||1,000,000||r||$||1,564,000|
|North Santa Barbara County||$||255,440||$||266,670||$||367,860|
|na - not available|
|r - revised|
Source: CALIFORNIA ASSOCIATION OF REALTORS®