California Home Sales Increase 4.7% in November; Median Price Rises 5.8%

Strategic Insights -

California home sales increased 4.7% in November compared with the same period a year ago, while the median price of an existing home rose 5.8%, according to data from the CALIFORNIA ASSOCIATION OF REALTORS (C.A.R.). The surge in sales is attributed to first-time buyers taking advantage of the federal tax credit prior to its expiration. The extension and expansion of the tax credit until April 30, 2010, along with low interest rates, are expected to positively impact the market in the coming months.

Key Takeaways:

  • Home sales in California increased by 4.7% in November compared to the same period a year ago, with a total of 536,720 closed escrow sales of existing, single-family detached homes at a seasonally adjusted annualized rate.
  • The statewide median price of an existing, single-family detached home increased by 5.8% to $304,520 in November, a 2.4% rise from October's median price of $297,500.
  • C.A.R.'s Unsold Inventory Index fell to 4.5 months in November, compared to 7.1 months in November 2008, indicating a decrease in the supply of homes on the market.
  • The median number of days it took to sell a single-family home was 33.1 days in November, down from 44.4 days in November 2008.
  • Regional MLS sales and price information are available on C.A.R.'s website, with 102 of the 362 cities and communities reporting an increase in their respective median home prices from a year ago.
  • The 10 cities with the highest median home prices in California during November 2009 were Los Altos, $1,475,000; Palo Alto, $1,222,500; Los Gatos, $1,166,500; and Manhattan Beach, $1,163,500.

Statistics:

  • 536,720 closed escrow sales of existing, single-family detached homes in California at a seasonally adjusted annualized rate in November.
  • 4.7% increase in home sales in California compared to the same period a year ago.
  • 5.8% increase in the statewide median price of an existing, single-family detached home to $304,520 in November.
  • 2.4% rise from October's median price of $297,500.
  • 4.5 months Unsold Inventory Index in November, down from 7.1 months in November 2008.
  • 33.1 median number of days it took to sell a single-family home in November, down from 44.4 days in November 2008.
  • 10 cities with the highest median home prices in California during November 2009, with Los Altos at $1,475,000 and Palo Alto at $1,222,500.

Sources:

  • CALIFORNIA ASSOCIATION OF REALTORS (C.A.R.)
  • Freddie Mac
  • DataQuick Information Systems
  • MacDonald Dettwiler and Associates
  • Los Angeles Times