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REALTOR®: C.A.R. reports June home sales decrease 24.7 percent, median home price continues to rise

Wednesday, August 1, 2007

The trend of slower home sales and a rise in median home price continues in the state of California. Home sales decreased 24.7 percent in June in California compared with the same period a year ago, while the median price of an existing home increased 3.2 percent, according to a report from the California Association of REALTORS® (C.A.R.).

"The focus on foreclosures and subprime lending is ongoing and, coupled with higher inventories of homes for sale, is prompting many would-be buyers to play a 'wait-and-see' role," said C.A.R. President Colleen Badagliacco. "However, well-maintained homes with curb appeal that are priced for today's market continue to sell. It's often a matter of counseling buyers and sellers to set realistic expectations on both sides of the transaction.

"First-time buyers continue to be impacted by tighter mortgage underwriting standards and the affordability challenge, which has not improved significantly despite price declines in most regions of the state," she said.

Closed escrow sales of existing, single-family detached homes in California totaled 364,280 in June. Statewide home resale activity decreased 24.7 percent from the 483,690 sales pace recorded in June 2006.

The median price of an existing, single-family detached home in California during June 2007 was $594,260, a 3.2 percent increase over the median for June 2006. The June 2007 median price increased 0.2 percent compared with May's revised $592,780 median price.

"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 C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "The San Francisco Bay Area continues to see leaner inventory levels compared to Southern California and the state as a whole."

"It is important to note that the decline in sales is not driven by weakening economic conditions, although higher gasoline prices have contributed to weaker consumer confidence. Both the California and U.S. economies continue to expand," added Mark Burns, president of the Silicon Valley Association of REALTORS®. Burns said the market also continues to perform well in the Silicon Valley area. The median price of a home in Santa Clara County increased 2.9 percent to $715,000 in June, compared with the prior year. Los Altos and Saratoga are two Silicon Valley communities that have consistently ranked among the top 10 cities in the state with the highest median home price.

Statewide, the 10 cities and communities with the highest median home prices in California during June 2007 were: Laguna Beach, $1,700,000; Burlingame, $1,637,500; Los Altos, $1,635,000; Newport Beach, $1,615,000; Palos Verdes Estates, $1,542,000; Saratoga, $1,465,000; La Canada-Flintridge, $1,400,000; Mill Valley, $1,395,000; Manhattan Beach, $1,300,000; Hermosa Beach, $1,205,000.

Statewide, the 10 cities and communities with the greatest median home price increases in June 2007 compared with the same period a year ago were: Menlo Park, 41.5 percent; Palos Verdes Estates, 25.9 percent; La Canada-Flintridge, 21.7 percent; Arcadia, 21.1 percent; Newport Beach, 20.1 percent; Santa Monica, 18.7 percent; Moorpark, 16.1 percent; Chino Hills, 12.6 percent; Saratoga, 11.9 percent; Los Angeles, 11.7 percent.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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