Housing Bubble
California home sales post 9.8 percent increase while prices rose in November
The median price of existing homes in California in November increased 21.5 percent and sales rose 9.8 percent compared to the same period a year ago, the California Association of REALTORS® reported today.
"The median price of a home in California continued to post dramatic gains last month, and has increased by double digits every month for the past 12 months," said C.A.R. President Toby Bradley. "While this trend is due in part to favorable interest rates, it also reflects that the supply of homes for sale in California continues to fall short of meeting the state's long-term housing needs."
Closed escrow sales of existing, single-family detached homes in California totaled 542,120 in November 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 9.8 percent from the 493,870 sales pace recorded in November 2001.
"Year-to-date sales of single-family homes were up 13 percent through November compared to last year," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Sales posted a 6.4 percent decline last month compared to a October's strong pace."
The statewide sales figure represents what the total number of homes sold during 2002 would be if sales maintained the November 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 November 2002 was $328,310, a 21.5 percent increase over the $270,210 median for November 2001, C.A.R. reported. The November 2002 median price increased 1.6 percent compared to October 2002.
C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in November 2002 was 3.1 months, compared to 3.4 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.
The report also found that homes were selling faster. The median number of days it took to sell a single-family home was 28 days in November 2002, compared to 33 days for the same period a year ago.
Thirty-year fixed mortgage interest rates averaged 6.05 percent during November 2002, down from 6.66 percent in November 2001, according to the Federal Home Loan Mortgage Corp. Adjustable mortgage interest rates averaged 4.14 percent in November 2002 compared to 5.20 percent in November 2001.