Housing Bubble
Sales
Post 17.0 Percent Increase and prices rise in October C.A.R. Reports
The median price of existing homes in California in October increased 22.7 percent and sales rose 17.0 percent compared to the same period a year ago, the California Association of REALTORS® reported today.
"Although the median price of a home increased by double digits again last month compared to a year ago, it's held steady in the $320,000 range since May," said C.A.R. President Toby Bradley. "Sales are up dramatically in percentage terms compared to a year ago in large part due to the 'wait-and-see' period that followed Sept. 11 last year. The lowest interest rates in more than four decades also contributed to October's sales increase, which was the seventh highest monthly sales volume on record."
Closed escrow sales of existing, single-family detached homes in California totaled 579,240 in October 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 17.0 percent from the 494,920 sales pace recorded in October 2001.
"Year-to-date sales of single-family homes increased 13.3 percent as of October compared to the first ten months of 2001," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Our unsold inventory indicator for 2002 is on track to be the lowest annual figure on record, and was at three months in October. In a typical market, there is usually a seven- to 10-month supply of homes for sale." This index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate and was equal to 4.0 months for the same period a year ago.
The statewide sales figure represents what the total number of homes sold during 2002 would be if sales maintained the October 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 October 2002 was $322,730, a 22.7 percent increase over the $263,020 median for October 2001, C.A.R. reported. The October 2002 median price increased 0.1 percent compared to September 2002.
The median number of days it took to sell a single-family home was 26 days in October 2002, compared to 34 days for the same period a year ago.
In a separate report covering more localized statistics generated by C.A.R. and Real Estate Solutions' MetroScan® service, 307 of 352 California cities and communities showed an increase in their respective median home prices from a year ago.
According to data collected by C.A.R.
and Real Estate Solutions the top three areas for median home prices
in California during October 2002 were: Beverly Hills, $1,115,000;
Pacific Palisades, $1,015,000; and Laguna Beach, $924,000.
Source
PRNewswire
