Sales of Existing Homes in State Rebound in November

California’s resale housing market bounced back in November, with the highest level of sales since March, but sales in both Los Angeles and Orange counties were down from October’s rate.

Across the state, 558,096 existing single-family detached homes were sold during November on an annualized basis, up 13.8% from 490,267 in October, according to findings based on reports from 74 California boards of realtors.

The statewide median price of a single-family home sold during November was $195,400, up 1% from $193,557 in October. The increase ended three consecutive months of statewide price declines.

“This is a temporary rebound,” said Leslie Appleton-Young, the association’s vice president of research and economics. “Affordability constraints will keep a lid on the market.”

Sanford R. Goodkin, a San Diego real estate consultant, agreed with Appleton-Young’s view that the November rebound might be temporary and that the December and January figures would likely be weaker.

However, Goodkin added that California’s housing market is in better shape than most of the nation and that prices in the state are not likely to “plunge into an abyss.”

The November sales figure was 5.7% lower than the revised number for November, 1988, when 591,693 homes were sold on an annualized basis, and was the smallest year-over-year decline reported since May. (The annualized rate represents what would be the total number sold in 1989 if November’s pace were carried through the year.)

Also in the report, the association said sales in several cities, including the Los Angeles region declined.

Sales dropped 3.8% in Los Angeles from October on a non-seasonally adjusted basis and were down 9.4% from November, 1988.

The median home price in the area rose by 0.8%, from $222,842 in October to $224,625 in November. The median was up 17.7% from the November, 1988, revised figure of $190,866.

In Orange County, sales of existing homes also slipped 10% from October, on a non-seasonally adjusted basis, and were down 19.1% from November, 1988.

The median price of a home sold there fell 4.1%, from $235,034 in October to $242,765 in November, but was 7.5% higher than the median for November, 1988.