The median price of an existing home in California increased 10.2 percent in April, while sales decreased 21.4 percent compared with the same period a year ago, the California Association of Realtors said in its monthly report.
"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 Vince Malta, state association president and a San Francisco Realtor. "While still near their historic lows, mortgage interest rates are at their highest level since June 2002 for fixed-rate mortgages, and August 2001 for adjustable-rate mortgages."
Closed escrow sales of existing, single-family detached homes in California totaled 516,960 in April at a seasonally adjusted annualized rate, down 21.4 percent from the 658,060 sales recorded in April 2005.
The median price — half sell for more, half for less — of an existing, single-family detached home in California during April was $562,380, up 10.2 percent over $510,400 last year.
"At 10.2 percent in April, we’re seeing price appreciation trend toward a more sustainable rate for the California housing market," said association VP and Chief Economist Leslie Appleton-Young. "Increased inventory levels are moderating the rate of price appreciation, but are still below what we experience in a more traditional market when thelong-term supply of unsold inventory is about 7 months."
The Realtors reported the number of days it took to sell a single-family home was 42 days in April, compared with 28 days for the same period last year.