Home Sales in State Climb as Prices Fall : Housing: The median cost slipped for the fifth straight month in August. That, and a trend toward smaller houses, spurred buying.
California’s median home price declined for the fifth straight month in August, but the pace of sales rose for the first time in five months, a realty trade group reported Tuesday.
The California Assn. of Realtors said that based on the August sales rate for existing, single-family homes, 426,805 units would be sold in a year.
That was 14.9% higher than the pace in August, 1989, and up 1.6% from the rate in July, the real estate brokers group said.
The August median price of an existing single-family home was $193,292, down 0.4% from $194,099 in July and off 3.1% from $199,385 a year earlier.
A shift toward smaller homes contributed to the decline in the median home price, the price at which half the sales were for more, half less, the trade group said.
Jim Antt Jr., the president of the group, said inventories had dropped and sellers were pricing homes lower, contributing to the upturn in sales.
In a separate report, the National Assn. of Realtors reported that nationwide sales of existing homes rose 2.1% in August from the previous month, reflecting buyer strength in some regions of the country. But sales remained below year-ago levels.
The NAR said August’s annual sales rate for single-family homes was 3.4 million units, up from a revised 3.33 million units in July. The NAR previously reported a July pace of 3.4 million homes.
The August rate, however, was 1.2% lower than in August, 1989, the group said.
Home sales in the West fell to a rate of 510,000 annually from July’s 530,000 units, while median home prices in the area rose $1,900 to $141,600 from a month ago, the NAR said.
The national median price for single-family homes was $97,000 in August, down slightly from $98,300 in July, but up $1,200 from August 1989.
AUGUST REGIONAL HOME SALES ACTIVITY*
The California Assn. of Realtors’ median price and sales data for detached homes are based on reports from 80 boards of Realtors around the state. Median condominium price and sales data are based on a survey of 32 boards. Regional sales data is not seasonally adjusted.
Percent Percent Percent change change change in sales in price in price activity from from from Median price July, ’90 Aug., ’89 July, ’90 California $193,292 -0.4% -3.1% 1.6% (single family) California (condo) 145,204 0.2 0.8 4.2 Central Valley $118,112 -4.1% 19.7% 0.5% High Desert*** 108,600 2.6 18.5 31.0 Los Angeles 212,170 -1.6 -5.0 -0.9 Monterey 245,672 12.4 0.8 16.8 Northern California 148,048 1.3 23.9 4.2 Northern Wine 177,575 n.a. 7.7 n.a. Country Orange County 239,649 -2.5 -2.2 7.8 Palm Springs/ 115,142 -10.1 0.4 8.1 Lower Desert*** Riverside/ 133,509 -0.1 3.6 11.8 San Bernardino Sacramento** 142,900 -2.1 22.8 -14.3 San Diego 186,736 0.3 -1.2 9.0 S.F. Bay Area 265,067 -0.4 -3.0 9.4 Santa Barbara*** 190,714 -13.1 -25.0 2.7 Santa Clara 273,342 -0.1 -5.2 5.2 Ventura 234,006 -2.6 -13.2 8.8
Percent change in sales activity from Aug., ’89 California -14.9% (single family) California (condo) -9.3 Central Valley -1.1% High Desert*** -14.5 Los Angeles -24.3 Monterey -12.6 Northern California -6.9 Northern Wine -35.4 Country Orange County -22.7 Palm Springs/ 6.1 Lower Desert*** Riverside/ -11.3 San Bernardino Sacramento** -12.3 San Diego -7.5 S.F. Bay Area -17.8 Santa Barbara*** -26.9 Santa Clara -14.5 Ventura -22.0
*Based on closed escrow sales of single-family, detached homes only (no condos). Reported month-to-month changes in sales activity may overstate actual changes because of the small size of individual regional samples. Movements in sales prices should not be interpreted as measuring changes in the cost of a standard home. Prices are influenced by changes in cost and changes in the characteristics and size of homes actually sold.
***Because of the small sample size in these areas, prices and activity changes may be overemphasized.
**Source: Sacramento Assn. of Realtors
