Industry News

Sales down but prices, inventory rise in California

CAR: tighter lending standards, affordability dent sales

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Sales of existing homes in California in June fell 24.7 percent from a year ago, but median prices still eked out a slight gain for the year. Existing, single-family detached homes sold at a seasonally adjusted annual rate of 364,284, compared to 483,690 homes per year last June, the California Association of Realtors reported. The median sales price was $594,260, up 3.2 percent from for June 2006, and an increase of .2 percent over May's $592,780 median price. Unsold inventory stood at 10.1 months, compared with 6.1 months for the same period a year ago. "With just over a 10-month supply of homes for sale on the market, we expect further softness in prices in the coming months," said CAR's chief economist, Leslie Appleton-Young. The San Francisco Bay Area continues to see "leaner inventory levels" than Southern California and the state as a whole, Appleton-Young said in a statement. CAR President Colleen Badagliacco said first-time buyers face tighter mortgage underwriting standar...