Industry News

California real estate sales drop 21%

Price appreciation strong despite more inventory
Published on May 26, 2006

The median price of an existing home in California increased 10.2 percent in April while sales decreased 21.4 percent compared to the same period a year ago, the California Association of Realtors reported Thursday. Closed escrow sales of existing, single-family detached homes in California totaled 516,960 in April at a seasonally adjusted annualized rate, down from the 658,060 sales pace recorded in April 2005. The statewide sales figure represents what the total number of homes sold during 2006 would be if sales maintained the April pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales. "Sales fell this year compared with April 2005 when they hit the second-highest monthly pace on record. Concerns about the likelihood of future interest-rate increases continue to influence the market," said C.A.R. President Vince Malta. "While still near their historic lows, mortgage interest rates are at their highest level since June 2002 for ...

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