California home sales rise as prices continue to slump
California home sales were up in February but median prices remained mired in the muck of a lackluster housing recovery.
Real estate firm DataQuick estimated 29,630 houses and condominiums sold in the Golden State last month, an increase of 8.5% from the same month a year earlier. Sales have improved every month for the last seven months, and February was the strongest for a February since 2007.
The median home price for the state fell 2% from the same month a year earlier, hitting $239,000. Many experts predict that housing will bottom out this year, but prices are likely to remain muted with high unemployment, tight credit and a steady supply of foreclosures. The median is the point at which half the homes in the state sell for more and half for less.
“Drum-tight credit conditions continue to undermine housing, along with negative equity and the various uncertainties plaguing would-be buyers,” John Walsh, president of San Diego-based DataQuick, said.
Investors played a big role, with absentee buyers snapping up a record share of homes sold last month in both Southern California and the Bay Area. Excluding sales of new homes, absentee buyers purchased 29.7% of all homes in Southern California and 26% of all homes in the Bay Area.
The Southland’s median home price fell 3.7% from the same month a year earlier to $264,750 while sales jumped 8.4% to 15,573 houses and condominiums. In the Bay Area, the median price fell 3.6% to $325,500 while sales surged 14.2% to 5,702.
