by Calculated Risk on 9/25/2006 07:03:00 PM

The California Association of Realtors reports: C.A.R. reports sales decrease 30.1 percent in August, median price of a home in California at $576,360, up 1.6 percent from year ago

Home sales decreased 30.1 percent in August in California compared with the same period a year ago, while the median price of an existing home increased 1.6 percent ...

"We experienced the greatest year-to-year sales decline last month since August 1982, when sales fell 30.4 percent," said C.A.R. President Vince Malta....

Closed escrow sales of existing, single-family detached homes in California totaled 442,150 in August at a seasonally adjusted annualized rate... Statewide home resale activity decreased 30.1 percent from the 632,240 sales pace recorded in August 2005.
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The median price of an existing, single-family detached home in California during August 2006 was $576,360, a 1.6 percent increase over the revised $567,320 median for August 2005 ... The August 2006 median price increased 1.7 percent compared with July’s revised $566,940 median price.

"Although the median price in the state and in several regions hit an all-time record in August, we expect softer prices toward the end of the year," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. ...

C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in August 2006 was 6.8 months, compared with 2.6 months (revised) for the same period a year ago.

In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 61.7 percent, or 246 out of 399 cities and communities showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information.

According to NAR, nationwide existing home sales are off 12.6%, compared to 30.1% for California, since August 2005.

California's sales decrease accounts for over 20% of the U.S. sales decrease since last August. Yet California still has slightly less inventory on a month of sales basis: 6.8 months vs. 7.5 months for U.S. That is probably why median prices in California have held up slightly better than for the U.S.

I live in California, and everyone I talk with in the real estate business believes prices are falling ... and falling significantly in some areas like Sacramento and San Diego. It's not a good sign that California is holding up the U.S. statistics. I believe that will change soon.